Used electric cars are among the “slowest to sell” with supply begging to massively outstrip demand across the UK, according to experts.
New analysis from Cap HPI has revealed electric car valuations are dramatically down with hundreds sliced off asking prices.
In comparison, petrol valuations continue to hold with rates almost exactly the same in a major blow to the EV market.
Statistics from Cap HPI found battery electric vehicles saw the largest average decline with values down by around 3.7 percent or around £780.
Meanwhile, petrol prices were down just one percent or £200 with diesel declining by 1.9 percent or £380 on average.
Derren Martin, director of valuations at Cap HPI said: “The market feels healthy, but a number of retailers have expressed that demand is slightly below where they had hoped and budgeted for, after a robust first quarter.
“Petrol-engine vehicles have continued to be the flavour of the month, with dealers comfortable that they will sell these quicker than other fuel types.
“Interestingly, BEVs (battery electric vehicles) and diesel-engine cars have been the slowest to sell, making dealers wary about overstocking.”
According to Cap HPI, it is the largest electric car value drop since June last year when some models were down by a staggering 12.5 percent.
Derren suggested that the lower prices could “stimulate” an increase in demand for EVs at lower price tags.
However, he admitted that further value drops were likely over the course of the next month.
Derren added: “The average May movement in values since 2012, excluding 2020 and 2021 due to the highly unusual used market in those years, was -1.6 percent.
“So, if we are returning to seasonal norms, somewhere close to this average would not be a shock.
“Battery Electric models will likely continue to see mixed-value moves. There have been some incredibly large drops this month, which may help stimulate demand, but there could also be some large movements to come for some cars as they continue to find their place in the market.”
Recent data from AA Cars has also revealed a drastic decline in second-hand electric car valuations.
Statistics reveal that prices for the top 20 most sought-after used EVs and hybrids were down 12 percent in the year to the end of Q1 2024.
Overall, vehicles were sold for an average of £19,548 – down on the previous price tag of £22,158 in 2023.
