When you’re looking at the state of the electric vehicle (EV) market it’s sometimes easy to confuse cause with effect.
Recent analysis from Auto Trader indicates that demand for used EVs hit record levels last year, but prices – or residual values – have been in retreat. Figures from the UK automotive online marketplace show that “by the second half of the year, used electric cars sold faster than any other fuel type”. This suggests that “uptake is much higher despite other barriers still existing for consumers including concerns around battery health and public charging infrastructure”.
That conclusion seems to reflect a resolutely ‘glass half-full’ scenario. Yet the same market analysis indicates that the supply of new EVs is outstripping demand from retail buyers. The question, therefore, is whether those considering the purchase of an EV are instead being attracted to the used car market by lower upfront costs. After all, a new EV is still around 36 per cent more expensive than a petrol or diesel equivalent, negating some of the cost advantages of fuelling the vehicles.