The electric vehicle market is growing at a rapid pace – many car professionals are now suggesting that sales of fossil fuel cars and vans have already peaked in the UK.
As of February 2022, there were over 420,000 pure electric cars on UK roads and over 780,000 plug-in models. With sales of new petrol and diesel cars set to be banned in the UK by 2030, electric vehicle sales are likely to grow exponentially as the UK government plans to make the country carbon neutral by 2050.
With growing consumer demand, increased interest in electric vehicles and continued government support, now is certainly a great time to find a good offer if you are considering selling your electric vehicle. The market for used EVs is growing rapidly as buyer demand increases.
With so many motorists switching to electric cars, it may feel like an odd time to sell, but with such high demand, you could be making good returns if you choose to sell now.
Why should you sell your EV?
There can be many reasons to sell your electric car. With the performance of EVs constantly improving, you might want to upgrade to a longer-range electric model? Or maybe your battery has deteriorated and your EV is no longer performing as you would like? Perhaps you’ve even decided that before the 2030 ban, you’d rather switch back to a new petrol or diesel car?
With demand rising, you can expect a healthy price when selling a used EV. However, selling an electric car can be tricky at times, with a few elements to consider depending on how you bought it.
What is the difference between selling an electric car and selling a fossil fuel car?
When you buy a traditional fossil fuel vehicle or get financing, the sale typically includes the car or van batteries. While with many EV sales, there is the choice to buy or finance the entire car, or to pay for the car and lease the battery separately.
If you decide to lease, it means that if the vehicle’s lithium-ion battery deteriorated significantly, the company you leased from would replace it. However, it also means that while you own the car, you do not own the battery pack.
However, if you are going to sell, having a car with a leased battery can be problematic. The resale value of pure electric cars is generally not helped by some automakers, such as Renault, who retain ownership of the car’s battery. Many EV car ads aren’t clear on whether the asking price of the car includes the battery – or whether it should be leased. This can, of course, be frustrating for potential buyers.
For some car makes and models, battery leasing is not an option. For example, the battery pack is always included with Tesla and BMW i models. Other models, such as the Nissan Leaf and Renault Zoe, are typically purchased with a battery lease, although some owners will choose to buy the battery in full.
The cost of lithium-ion batteries – traditionally the most expensive parts of electric vehicles – has fallen dramatically in recent years. Energy industry researchers Bloomberg New Energy Finance (BNEF) claim that lithium-ion battery prices fell as much as 87% between 2010 and 2019. If this trend continues, EVs should reach price parity with new fossil fuel vehicles sometime between 2025 and 2029 – just in time for the electric switch.
Do electric vehicles hold their value?
As with fossil fuel vehicles, electric vehicles are depreciated. In the UK, the depreciation of EVs varies between makes and models, but generally means a loss in value between 15-35% in the first year and up to 50% in the third year. This rapid depreciation then slows down after year three.
As with fossil fuel vehicles, the main factors that cause this depreciation are age and mileage. Unless it is a classic car, as a rule, the older a car is, the lower its market value will be. Likewise, a car with a high mileage is usually worth less than the same model with fewer miles on the odometer, simply because mileage is an important indicator of a car’s overall condition.
EVs generally hold their value better than petrol cars, which tend to depreciate faster. However, diesels have been depreciating the fastest in recent years, partly as a result of the controversy surrounding the diesel emissions scandal.
For those looking to buy a used electric car, however, depreciation can be a good thing, as it means they can pick up a three-year-old EV model that is in excellent condition, but a large percentage of its original market value.
Is Now a Good Time to Sell an EV?
The use of EVs in the past year is likely to continue (and grow), but for a true mass market it will require the commitment of automakers to offer a more diverse range of electric vehicles at more affordable prices.
Although the Tesla 3 was the best-selling car in the UK last year, the model is not affordable for many car buyers, and the carmaker that will take the most market share in the next decade will likely be the one producing efficient, environmentally friendly products. models – and manages to close the affordability gap for those on a tighter budget.
In the short term, the high cost and limited production of EV models means there is a distinct lack of spillover into the used car market – helping to keep EV values high. As a result, it remains a seller’s market for owners who bring virtually any EV model to market – at least for now.
Where is the best place to sell an electric vehicle?
Now that demand is high, it’s now easier than ever to sell your electric car and find a great price.
It’s quick and easy to sell your electric car with Motorway, and they will help you every step of the way. Simply enter your EV registration on their website and get an instant valuation. They then ask you a few simple questions about your car and guide you through the photos you need to take to complete your vehicle profile. This can usually be done from your phone in a matter of minutes.
Your electric car will then be included in an online daily sale, where it will be shown to motorway nationwide network of over 5,000 verified car dealers – who will compete to give you their best price.
You will receive your best offer within 24 hours – and if you wish to proceed with the sale, your car will be collected from your home for free and the money will be deposited into your bank account quickly.