Used EVs are now cheaper than petrol or diesel equivalents, say researchers

HPI data shows that average retail prices of EVs are cheaper than petrol and diesel vehicles by around 8.5% at three years and rising to 14% at four years.

With over 1.1 million battery electric cars on UK roads, HPI, a vehicle history check and valuation specialist, is offering motorists a handy new guide to buying their first EV.

New EVs are commonly more expensive than the closest petrol and diesel equivalents, however, used EV values have fallen sharply in the past two years to provide motorists with a bargain.

A used EV represents a big saving over the new price. On average, values of used EVs for cars at the same age and mileage point have halved in value since September 2022. For models such as the Jaguar i-Pace, Mercedes EQC and Tesla Model X, this can equate to well over £20,000 less than in the summer of 2022, and for cars like the Porsche Taycan, up to £40,000 less, making previously unobtainable cars a real option for more consumers.

Chris Plumb, EV specialist at HPI, said: “The growing availability of second-hand electric models is driving demand as motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices. However, switching from traditional petrol and diesel motoring to electric isn’t a like-for-like swap, and certain factors should be taken into consideration before going ahead.

“The fundamental consideration is can the vehicle be charged. If charging the car at home or nearby then EV ownership is possible. Homeowners with off-street parking will almost certainly fall into this category because there is nothing to prevent them from installing a domestic charge point and topping up the battery overnight. It’s also the cheapest way to charge an EV.

“If on-street, public charge points are close by or at work, then there is still every chance an EV will suit. If home, street or work-based charging are not readily available, then an EV may not be a realistic choice just yet.”

Other factors to consider when buying a used EV include:

• Charger costs – installing a wallbox is worth adding to the overall budget for the car. It costs around £800-£1,000 for a home charge point, although energy suppliers are increasingly offering EV-specific tariffs, which sometimes include a home charger bundled with the package, avoiding an up-front payment.
• Salary sacrifice schemes – where employees give up a portion of their earnings in exchange for a new or a used car, these schemes sometimes include a wallbox as an added incentive to switch to a zero-emissions car
• Vehicle history – when buying a used EV, it’s essential to understand its history. The HPI Check Report will flag any worrying information held against the vehicle by finance and insurance companies, the DVLA, the Police and other industry bodies. A comprehensive HPI Check is the most important check before buying a used car and is the first line of defence against vehicle fraud.

In May 2024, 17.6% of all new car registrations were electric cars, with 26,031 new electric cars registered. Sales of used electric cars were 71% higher in the first quarter of 2024 than in the same period last year, and sales of used hybrids are also increasing significantly. More than 41,500 pure electric cars were sold on the used market in the first quarter of this year alone,

Added Chris Plumb: “For drivers considering the switch to electric with a used EV, the HPI Check report is crucial. It arms motorists with vital information about the car they want to buy, not only offering protection from motoring scams and fraud but also helping to understand the vehicle’s running costs. The Total Cost of Ownership (TCO) calculator considers all costs and outlines how much to expect to spend over the next three years of ownership. Using cutting-edge technology to ensure accurate and up-to-date vehicle information,  it is an invaluable tool that also breaks down what the costs are for and when they need paying.”

With lots of often confusing and conflicting information already in circulation about EVs, HPI’s guide simplifies everything first-timers need to know and how to approach the buying process.

Part of Solera Holdings Inc, which provides risk management and asset protection software and services to the global automotive industry, HPI first pioneered the vehicle check back in 1938, offering valuable protection to millions of UK car buyers from fraud.

Chris Plumb concluded: “An EV provides a reliable and enjoyable motoring experience that provides cost-effective ownership. Drivers looking to begin their EV journey with a used model should start with a HPI Check to ensure they are fully equipped with all the information they need.”

It is recommended that an HPI Check is taken before buying a used car.  HPI Checks reveal some shocking statistics that can affect the value of a car, including 2,205 cars being identified as write-offs and 1 in 3 cars having a hidden history or still having outstanding finance.