‘The average 3-year-old BEV is almost 44% cheaper than in January 2023.’ This was the headline of the latest monthly analysis of used car sales by industry market watchers Indicata.
The fall in prices reflects the rapidly increasing numbers of three year old battery electric vehicles (BEVs) now on UK roads, as BEVs take an increasing slice of the new car market.
While the number of BEVs is rising—this year, to the end of June, they accounted for almost one in five new cars sold—the number of new petrol and especially diesel cars continues to fall. New petrol cars accounted for 50.9% of new cars sold, and diesel cars have just a 6% market share (not many years ago, almost every other new car was diesel-fuelled). The rest of the new car market is made up of hybrid cars.
The net result is that the number of used petrol and diesel cars in the new – 5 age range is falling. Conversely, the number of electric cars is rising. In the coming years, used petrol and especially diesel cars may become more expensive as their supply dries up.
But what about battery life?
Just like a petrol or diesel engine, the efficiency of a battery declines, but all the evidence suggests it is not something that should be a cause for major concern. Car manufacturers offer at least an eight-year, 100,000-mile warranty on their battery packs, which is a statement of their confidence.
As for evidence, a crowdsourced study by Tesla owners in the Netherlands—using data from around the world—showed that Model S owners experienced an average degradation of around 5 per cent in range after 50,000 miles of driving. However, the degradation curve then starts to level out, indicating a loss of around 10 per cent capacity or less after 150,000 or even 200,000 miles.
We should also not overlook the reality that BEVs need far less servicing than petrol or diesel cars, as they have far fewer moving parts that wear out or need routine replacement.
To conclude, not only are used BEVs becoming more affordable, but the choice of cars available is also broadening.
