EV values rebound in September after two-year decline, reports Cap HPI

EV values finally rebounded in September after a two-year period of free-fall, according to industry experts at Cap HPI.

Used models emerged as the top-performing fuel type, with an average value increase of 1% at the three-year mark, marking a significant shift following a two-year period where values dropped by around 60%.

Nearly half of the BEV models aged three years saw their values increase this month, up from just 11% in August.

Meanwhile, 29% of models saw no change, and 19% experienced further declines. Despite this positive movement, the BEV market remains complex, with varying performance across different models and segments.

The overall used car market saw a solid performance in September, with values at the three-year, 60,000-mile point rising by 0.2%, contrasting with the typical seasonal decrease of -0.2%.

This positive adjustment continues the trend of stable used car prices throughout 2024, with each month showing better-than-average performance compared to historical seasonal trends.

Chris Plumb, senior valuations editor at Cap HPI, commenting on the market, said: “The price declines at the end of 2023 helped moderate the inflation seen in 2021. Although prices did not fully revert to previous levels, they remain about 15% higher than at the start of 2021. This stability has persisted throughout 2024, providing balance for both retailers and consumers.”

While most sectors saw modest gains, BEVs stood out, with models like the BMW i3 increasing in value by 5%, the Peugeot 208 by 4.5%, the Kia E-Niro by 4%, and the Nissan Leaf by 4%. The lower-medium or C sector electric vehicles performed particularly well, with values increasing by over 2%.

Among internal combustion vehicles, SUVs led the market, with medium-sized SUVs showing the strongest increase of 0.8%. Small and large SUVs also posted gains of 0.6% and 0.1%, respectively. Notable risers included the Renault Captur, Seat Arona, Mini Countryman, and Mazda CX-5, each seeing value increases of up to 2%.

However, some sectors faced challenges, particularly luxury segments. Supercars saw the largest decline in value, dropping by 2%, followed by Coupe Cabriolets at 1.8%, and Convertibles at 1.4%. Despite these decreases, the figures are relatively mild given the seasonal nature of these categories.

A notable turnaround was observed in Land Rover models, which saw an average value increase of 1.3%, or £290, at three years and 60,000 miles, following a 17% drop over the past year.

Plumb added: “It’s encouraging to see BEVs starting to regain value, especially for models priced below the £18,000 retail sweet spot. While it may be too early to declare a complete recovery, the market is clearly heading in the right direction.”

The resurgence of BEVs and overall market stability in 2024 reflect improving conditions for both retailers and consumers, as the used vehicle market continues to balance demand and supply across sectors.