Significant drop in used EV prices, reports Indicata

The average three-year-old used electric vehicle (EV) is now 43.8% cheaper than it was 18 months ago, according to Indicata's latest Market Watch report.

In June, used EV prices fell by another 2.0%, bringing them closer to price parity with internal combustion engine (ICE) cars across various sectors. While UK used car prices overall dropped by just 0.1% in June, they have declined by 16.5% since January 2023, indicating a stabilisation in the market.

One positive outcome of falling EV prices is the rising demand, which is now more aligned with supply. Market Days’ Supply (MDS) for EVs dropped to 50 days at the beginning of July, compared to 47.5 days for hybrids, and 45 and 41 days for diesel and petrol cars respectively.

This made the UK the European leader in lowest MDS for June, driven by strong demand and dealer caution in stocking zero-emission cars.

MDS is calculated by dividing the available inventory by the average daily sales rate over the past 45 days.