The electric vehicle (EV) market is undergoing a significant transformation, with HPI data revealing that the average retail prices of EVs are now cheaper than their petrol and diesel counterparts by around 8.5% at three years old, increasing to 14% at four years. This shift is providing a new opportunity for consumers to own environmentally friendly vehicles at a more affordable price.
The Rise of Used Electric Vehicles
With over 1.1 million battery electric cars on UK roads, HPI, a vehicle history check and valuation specialist, has introduced a handy new guide to assist motorists in purchasing their first EV. While new EVs are often more expensive than similar petrol and diesel vehicles, the values of used EVs have significantly dropped in the past two years, making them a bargain for potential buyers.
Financial Savings and Availability
A used EV offers substantial savings compared to its new price. On average, the value of used EVs for cars at the same age and mileage has halved since September 2022. This depreciation translates to significant price reductions for high-end models such as the Jaguar i-Pace, Mercedes EQC, and Tesla Model X, which can be over £20,000 less than their prices in the summer of 2022. For premium models like the Porsche Taycan, the savings can reach up to £40,000, making previously unattainable cars a viable option for more consumers.
Growing Demand and Environmental Impact
Chris Plumb, an EV specialist at HPI, notes that the increasing availability of second-hand electric models is driving demand. Many motorists are motivated by the desire to reduce their environmental footprint and save on motoring costs amid high diesel and petrol prices. However, transitioning from traditional fuel to electric requires careful consideration of several factors.
Key Considerations for EV Buyers
Charging Infrastructure
The primary consideration for potential EV buyers is charging capability. Homeowners with off-street parking can easily install a domestic charge point, allowing them to charge their EVs overnight conveniently and cost-effectively. For those relying on public charge points or workplace charging, proximity and availability must be assessed.
Charger Costs
Installing a wallbox charger at home typically costs around £800-£1,000. However, many energy suppliers offer EV-specific tariffs that include a home charger, eliminating upfront costs. Salary sacrifice schemes, where employees exchange part of their earnings for a new or used car, sometimes include a wallbox as an incentive to switch to zero-emissions vehicles.
Vehicle History
Understanding the history of a used EV is crucial. An HPI Check Report can reveal vital information about the vehicle from finance and insurance companies, the DVLA, the Police, and other industry bodies. This comprehensive check is essential for protecting against vehicle fraud and ensuring a wise investment.
Market Trends and Sales Data
In May 2024, 17.6% of all new car registrations were electric, with 26,031 new electric cars registered. Sales of used electric cars increased by 71% in the first quarter of 2024 compared to the same period in the previous year. Additionally, sales of used hybrids have also seen significant growth, with more than 41,500 pure electric cars sold in the used market in the first quarter alone.
The Importance of HPI Checks
Chris Plumb emphasizes that an HPI Check report is crucial for drivers considering a switch to electric vehicles, especially used ones. The report provides essential information about the car, protecting against motoring scams and fraud, and helps understand the vehicle’s running costs. The Total Cost of Ownership (TCO) calculator included in the report outlines expected expenses over the next three years, providing a clear picture of ownership costs.
Simplifying the Buying Process
HPI’s guide aims to simplify the often confusing and conflicting information surrounding EVs, making the buying process more straightforward for first-time buyers. As part of Solera Holdings Inc., which provides risk management and asset protection services to the global automotive industry, HPI has been pioneering vehicle checks since 1938, protecting millions of UK car buyers from fraud.
An EV offers a reliable and enjoyable motoring experience with cost-effective ownership. For drivers looking to start their EV journey with a used model, beginning with an HPI Check ensures they are fully equipped with all the necessary information. With significant savings and increasing availability, used EVs represent an attractive option for environmentally conscious and budget-savvy motorists alike.
It is highly recommended to conduct an HPI Check before purchasing a used car, as it can reveal crucial statistics affecting the car’s value, such as identifying write-offs and uncovering hidden histories or outstanding finance.
