Used EV prices climb in September after 2-year drop: Cap HPI

Exciting news for the electric car market as used electric car values have seen a 1% increase at the three-year mark in September, according to the latest data from Cap HPI.

This rise in EV values comes after 24 consecutive months of declines, where values had dropped by approximately 60%, prompting the BVRLA to urge the Government to take action.

Almost half of all fully electric cars at the three-year mark have witnessed an increase in their values this month, compared to just 11% in the previous month. Among the remaining cars, 29% have seen no change in value while 19% have experienced a decrease.

Some of the standout BEV models with value increases include the BMW i3 with a 5% rise, the Peugeot E-208 with 4.5%, the Kia Niro EV with 4%, and the Nissan Leaf also with a 4% increase.

Battery electric cars emerged as the top performers in the fuel type category in September. Despite the average improvement in values, the EV market remains complex, as noted by experts at Cap.

Chris Plumb, senior valuations editor, commented: “While it might be too early to conclude that the fortunes of some used BEVs have completely turned around, it is encouraging to see them moving in the right direction, especially for models below the optimum retail sweet spot of under £18,000.”

He added: “We have been consistently highlighting the great value-for-money proposition that used BEVs offer to both consumers and retailers. It is interesting to note that the best-performing segment of electric cars in September was the lower medium or C-sector, with values increasing by over 2%.”

The wider used car market showed strong trade and retail performance in September, with average values for three-year-old cars with 60,000 miles on the clock rising by 0.2%. This stands in stark contrast to the average seasonal downturn of 0.2% seen in previous years, excluding Covid-impacted periods.

September’s slight increase in used car values continues the steady trend observed throughout the year. Each month in 2024 has seen a more positive movement in values at three years/60,000 miles compared to the seasonal average.

The data from Cap HPI underscores the stability of the used car market in 2024, especially during the summer period.

Chris Plumb, senior valuations editor at Cap HPI

Looking ahead, Chris Plumb said: “The drop in prices during the last quarter of 2023 helped to ease some of the excessive inflation seen in the price hikes of 2021. Although prices did not fully revert to their previous levels, they remained around 15% higher than at the start of 2021, reaching a more reasonable point for retailers and consumers in early 2024, leading to overall stability since then.

“While there are nuances within this trend, in cases where supply surpasses demand for specific models and fuel types, values have declined. Nevertheless, on the whole, used car prices in 2024 have remained steady.”

In September, values saw a 0.1% rise at the one-year/10,000-mile mark, and a positive adjustment of 0.2% at the five-year/80,000-mile mark. The only downturn was at 10 years/100,000 miles, with a minimal decrease of 0.4% – still an improvement over previous months.

Supercars saw the largest drop in September, declining by 2%. This was followed by a 1.8% decrease in the coupé-cabriolet sector, and a 1.4% decrease in convertibles. Despite these declines, Cap noted that these sectors traditionally see larger decreases during this time of year.

SUVs were the best-performing sector, with an average movement of 0.6% for three-year-old models. Medium-sized SUVs experienced the biggest increase of 0.8%, followed by small SUVs at 0.6% and large SUVs at 0.1%. Notable risers include the Renault Captur, SEAT Arona, Mini Countryman, and Mazda CX-5, all seeing an average increase of 2%.

Land Rover products saw a bounce back, showing a 1.3% increase or around £290 at three years/60,000 miles in September. This comes after a tough 12 months for the brand, during which values dropped by approximately 17%, or £6,600 on average.