Interesting piece on TV last night re electric cars and their resale value, shocked to see that after 2 years some struggle to have much over 50% in resale value, also some insurance companies are refusing to insure them due to high repair costs, yep EV's are cheap right?.
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Used electric cars have below-average resale value and spend a longer time on sale than other used cars, new Australian data has found.
RELATED: Used-car prices are falling, but these models defy the trend
The data, taken from dealer and private used-car listings in Australia in December 2023, shows electric vehicles (EVs) are currently losing a large proportion of their value after the two-year mark.
The recent easing of EV supply constraints and widespread manufacturer price decreases are likely to blame, and have resulted in new electric cars becoming a more competitive option for buyers, experts said.
Additionally, electric cars still represent a relatively small proportion of the used-car market – with longer-tail data harder to come by given their relative infancy in Australia.
Average value retention for used electric cars
According to the data – shared by the Australian Automotive Dealers Association (AADA) and automotive insights company AutoGrab – used electric cars see a most dramatic drop in their retained value after two years, particularly when compared to the rest of the market.
Retained value reflects how much of a car's value when purchased new it would hold if sold today. For example, if a 2018 Toyota HiLux purchased new for $80,000 has a retained value of 85 per cent after two years, that means it would be worth roughly $68,000 if sold on the used-car market in 2020.
While electric cars less than two years of age retained a respectable 82.8 per cent of their original value when resold in December 2023, electric cars between two and four years old held on to just 57.6 per cent of their value, while electric cars five years of age or older were worth less than 25 per cent of their original purchase price when resold.
For comparison, the average retained value across the entire used-car market for vehicles between two and four years old was 85.9 per cent, meaning EV value retention was well below the market average.
"From the data, it's the two- to four-year-old category [of EVs] where we've started seeing significant drops in retained value that would be a concern for some EV buyers," James Voortman, CEO of the AADA, told
Drive.
Average value retention for used cars in Australia in December 2023
| Vehicle age | Electric cars | Entire market |
| 0–2 years | 82.8% | 95.5% |
| 2–4 years | 57.6% | 85.9% |
| 5–7 years | 24.1% | 68.8% |
Source: AutoGrab
Average days to sell for used electric cars
Meanwhile, days to sell – another measure of buyer demand – was also higher for electric vehicles when compared to the used-car market as a whole.
Looking to sell your EV on the used-car market? You'll have to move quickly, according to a new report.
www.drive.com.au
You know I think that the real reason the labor govt don't want nuclear power is because it will make all the renewables redundant.
