HPI Reveals Used EVs Now Cheaper than ICE Vehicles in the UK

Recent data from HPI reveals that used EVs are more affordable than their ICE counterparts.

After three years, the average retail price of EVs is about 8.5% lower than that of traditional vehicles, rising to 14% after four years.

HPI's guide helps consumers navigate the confusion surrounding EVs, providing clear information for first-time buyers. Part of Solera Holdings Inc., HPI pioneered vehicle checks in 1938, protecting millions of UK car buyers from fraud.

HPI's guide to the consumer

With more than 1.1 million EVs on UK roads, HPI — a vehicle history check and valuation specialist — has introduced a comprehensive guide to assist motorists in purchasing their first EV.

While new EVs are generally pricier than ICE models, the values of used EVs have decreased significantly over the past two years, offering great bargains for buyers.

Savings on used EVs

Purchasing a used EV can result in substantial savings. Since September 2022, the value of used EVs at the same age and mileage has halved.

The drop in value means that models like the Jaguar I-Pace, Mercedes EQC and Tesla Model X are now more than US$25,000 (£20,000) cheaper than in the summer of 2022. The Porsche Taycan, for example, is up to US$51,000 (£40,000) less, making these previously high-priced vehicles more accessible.

Ian Plummer, Commercial Director at Auto Trader said: “We have reached that price parity point that bridges the affordability gap for the consumer.”

With cost being a  barrier to EV purchases, Ian added that “once prices are the same, the consumer perception is that the vehicle choice is a very rational one and no longer dependent on the feeling of doing the right thing”.

Growing demand for used EVs

Chris Plumb, EV specialist at HPI, continued: "The growing availability of second-hand electric models is driving demand as motorists want to reduce their environmental footprint and make significant motoring cost savings due to high diesel and petrol prices.

"However, switching from traditional petrol and diesel motoring to electric isn't a like-for-like swap and buyers should consider certain factors before proceeding."

Critical considerations for consumers

HPI says that second-hand EV buyers should consider the following:

• Charging accessibility: The most crucial factor is the ability to charge the vehicle. For homeowners with off-street parking, installing a domestic charge point is straightforward, making EV ownership feasible. This option is also the most cost-effective way to charge an EV. If public charging stations are near or at work, an EV might still be a viable option. However, if charging at home, work, or nearby locations isn't accessible, an EV may not be practical
• Charger costs: When budgeting for a used EV, it's essential to consider installing a home wall box, typically around US$1,000 to US$1,200 (£800-£1,000). Some energy suppliers offer EV-specific tariffs that include a home charger as part of the package, which can help avoid an upfront payment.
• Salary sacrifice schemes: Some salary sacrifice schemes offer employees the chance to get a new or used EV, sometimes with a wall box included, encouraging the switch to zero-emission vehicles.
• Vehicle history: Understanding a used EV's history is crucial before purchasing it. The HPI Check Report can reveal any concerning information from finance and insurance companies, the DVLA, the police and other industry bodies. A vehicle check protects against vehicle fraud and ensures informed decision-making.

Surge in EV sales

In May 2024, EVs accounted for 17.6% of all new car registrations in the UK, with 26,031 new EVs registered. Sales of used EVs rose by 71% in the first quarter of 2024 compared to last year, with more than 41,500 EVs sold on the used market.

Chris added: "For drivers considering the switch to electric with a used EV, the HPI Check report is crucial. It arms motorists with vital information about the car they want to buy, offering protection from motoring scams and fraud and helping to understand the vehicle's running costs.

"The Total Cost of Ownership (TCO) calculator considers all costs and outlines how much to expect to spend over the next three years of ownership. Using cutting-edge technology to ensure accurate and up-to-date vehicle information is an invaluable tool that also breaks down the costs and when they need paying.

"An EV provides a reliable and enjoyable motoring experience that offers cost-effective ownership. Drivers looking to begin their EV journey with a used model should start with a vehicle check to ensure they are fully equipped with all the necessary information."

HPI recommends a full vehicle check before buying a used EV, as it will reveal critical statistics that can affect a car's value. A prime example is that one in three vehicles has a hidden history or outstanding finance.

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