Falling EV values make them the bargains of the used-car market

It won’t have escaped your attention that consumer demand for new electric cars has fallen off a cliff lately. And it isn’t just new cars – with the market oversupplied, values of second-hand EVs are dropping fast too, with the result that many are bucking the current trend for high used car prices.

That’s according to the latest data from CarGurus UK, the used-car website, where analysts keep tabs on the values of used cars. In October, nine out of the top 10 fastest-depreciating cars were either fully electric or available with pure electric power. The list was topped by the Jaguar I-Pace. 

Bust… or boon?

While heavy depreciation is bad news for new car buyers, it can be a boon for those buying used; cars that would have cost a hefty sum in the showroom can be had for a fraction of the price just a couple of years down the line. 

Chris Knapman, editor at CarGurus, UK says: “While brand new electric cars still carry a price premium over an equivalent petrol or diesel model, the gap in the used market has closed dramatically as a result of shifts in supply and demand. As such, compared with 12 months ago, now is a great time for those who might be thinking about making the switch to an EV.”

What’s more, the fall in values of many EVs means the price disparity between these models and their rival petrol and diesel equivalents on the second-hand market has shrunk considerably, as Knapman points out: “For example, somebody with a budget of £25,000 and in the market for a used Jaguar can currently choose between a three-year-old F-Pace SUV with a diesel engine and fewer than 40,000 miles on the clock, or a fully electric I-Pace of the same age and mileage,” he says.

Caveat emptor

Of course, not everyone will be able to take advantage – our standing advice is that EVs make sense for those who have a driveway at home where they can charge the car up. What’s more, the catch when buying a used electric car is that battery degradation will already have had an impact on a car’s range. 

However, a recent survey of more than 6,000 used electric cars by telematics company Geotab revealed that, on average, a three-year-old EV will still retain about 94 per cent of its original battery capacity. 

While that will still put some buyers off, savvy used car shoppers can take advantage by choosing a model that’s low on degradation, thus getting a car that’s just as usable as a brand-new model for a fraction of the price. 

Save, save, save

For example, a two-year-old Tesla Model 3, the model that comes second in the list of fastest depreciating cars, can currently cost as little as £32,000 in Long Range form with below average mileage – a saving of almost £20,000 over the car’s brand-new price tag.

Yet at that age, according to the Geotab study, a Model 3 will have a battery that can still hold 95 per cent of its brand-new capacity. That should mean even a Long Range version will only suffer a range deficit of a few miles compared with a brand-new example.

Alongside the nine EVs in the list sits one solitary combustion-engined model – the second-generation Mercedes-Benz CLS. CarGurus ascribes its appearance in the list to a combination of large, thirsty engines, a niche body style that relatively few used buyers seek out, and the arrival of the third-generation version in 2018, which will have knocked the values of the older model.

It is, however, the exception to the rule: the cars losing their value most rapidly on the used market at the moment are electric. 

Here’s the full list of the cars that have fallen in value the most over the past year, and now look like the best bargains.

1. Jaguar I-Pace (2018- )

Average asking price (September 2022): £53,899

Average asking price (September 2023): £33.016

Year-on-year depreciation: 38.7 per cent

It was one of the first premium electric cars to hit the market and its age is perhaps one reason the shine has come off the I-Pace for some buyers. Rumours of reliability foibles on older cars have also hit the I-Pace’s value. On the plus side, this is still a sleek and beautifully finished EV, and even against much newer models, it remains one of the most appealing to drive.

2. Tesla Model 3 (2018- )

Average asking price (September 2022): £47,427

Average asking price (September 2023): £29,337

Year-on-year depreciation: 38.1 per cent

It’s become one of the most common sights on British roads, but its popularity as a new car has perhaps caused the Model 3 some problems on the used market, where far fewer buyers are able to take advantage of the company car incentives that have made it such a favourite of fleet buyers and user-choosers. For all that, this is still one of the best EVs of its type – not to mention one of the easiest to charge. 

3. BMW i3 (2013- ) 

Average asking price (September 2022): £26,550

Average asking price (September 2023): £16,672

Year-on-year depreciation: 37.2 per cent

BMW’s switch to more conventional, more profitable EVs means it won’t make cars like the wilfully left-field i3 any more – and more’s the pity. But used buyers can profit from the i3’s recent fall in value, which allows them to get into this quirky, fun-to-drive and very neat little EV for hitherto unheard-of prices. 

4. Audi e-tron (2018- )

Average asking price (September 2022): £55,636

Average asking price (September 2023): £35,712

Year-on-year depreciation: 35.8 per cent

Big, heavy and a little dumb, the e-tron is nevertheless an extremely quiet and comfortable way to cover long distances. And with prices at this level, it starts to look like an attractive option compared with bigger, brasher Audi SUVs such as the Q8. 

5. Volkswagen ID.3 (2020- )

Average asking price (September 2022): £38,314

Average asking price (September 2023): £25,525

Year-on-year depreciation: 33.4 per cent

The ID.3’s appearance in this list is at least in part because of a dearth of new supply in 2022, which inflated prices for readily available used examples to rather silly levels. That bubble has burst, so ID.3 values have returned to much more reasonable sums, making this less a bargain and more a return to common sense. 

6. Renault Zoe (2020- )

Average asking price (September 2022): £22,179

Average asking price (September 2023): £14,861

Year-on-year depreciation: 33.0 per cent

It wasn’t quite an all-new car, but the heavy facelift in 2020 brought the Zoe up to date with a smarter cockpit and better battery technology. Not much more was needed, given it still looks as fresh as it did when the original came out in 2012 – and the Zoe remains a neat solution if you’re after a town-friendly EV with a bit of flair.

7. Nissan Leaf (2017- )

Average asking price (September 2022): £23,022

Average asking price (September 2023): £15,793

Year-on-year depreciation: 31.4 per cent

The second-generation Leaf wasn’t quite as much of a leap forward as we’d hoped, with less range and less space than it should really have offered. Having said that, it’s now lost so much value that a used example looks like an awful lot of car for the cash – bringing a genuine family-sized electric car into the reach of many second-hand buyers. 

8. Mercedes-Benz CLS (2011 - 2017)

Average asking price (September 2022): £27,181

Average asking price (September 2023): £19,366

Year-on-year depreciation: 28.8 per cent

The only entrant into the top ten not to feature an electric motor, the CLS’s drop in value can be attributed in part to the fact that not many used car buyers are searching for big coupes like this any more. But the fact remains that the second-generation CLS is still one of the most luxurious, most comfortable and most stylish cars on the used market. At these prices, it’s a steal. 

9. Kia e-Niro (2019 - 2021)

Average asking price (September 2022): £36,137

Average asking price (September 2023): £27,624

Year-on-year depreciation: 23.6 per cent

By the standards of the other EVs here, the e-Niro’s actually managed to hold on to quite a lot more of its value – which can be attributed to the fact early examples are relatively few and far between, a factor that has held prices for those cars up somewhat. But with prices now on the slide, the e-Niro looks better value than ever; in 64kWh, big-battery form it’ll genuinely manage 250 real-world miles on a charge, with room for the whole family. 

10. Hyundai Ioniq (2017-2022)

Average asking price (September 2022): £21,601

Average asking price (September 2023): £16,833

Year-on-year depreciation: 22.1 per cent

Available in electric, hybrid and plug-in hybrid forms, the Ioniq gives you the option to choose which powertrain works best for you. And while its melted soap bar styling isn’t exactly exciting (nor is the rest of the car, for that matter), this is a very sensible car that came with a long warranty, which should still have some time to run on all but the earliest examples. It’s no pin-up, but in these times of financial uncertainty, there’s a lot to be said for a reliable, affordable family hatchback that just gets the job done – which is exactly what this is. It’s also famed for its efficiency, too, so you can expect great real-world mpg from the hybrid versions, and while the electric version only has an official range of 170 miles, many owners still report exceeding that on a routine basis.