Commentary | Used electric residual values and the Electric Car Grant

Pricing data shows a significant gap between new electric vehicles (EVs) and 2–3-year-old cars as market forces have caused used EVs to match petrol and diesel alternatives to attract buyers. While the Electric Car Grant may boost new EV sales, used EVs remain appealing due to their affordability and it’s unlikely the Grant will either heavily or immediately impact used EV pricing and residual values.

Key spokesperson

Ian Plummer

Chief Customer Officer

CONNECT

"It was encouraging to see a strong surge of interest in new EVs on Autotrader immediately post the announcement and some of this positivity also flowed into used EVs, as we know the majority of those considering electric will shop both new and used cars.

“The new EV market is far from reaching parity, however, and that’s where the Grant will have a key role to play in ensuring there’s an EV for everyone. New government actions will mainly impact the new car market, including by probably forcing pricing actions on new EVs of brands not eligible for the incentives but needing to keep pace with their competitors. But whilst attractively priced used EVs are still well below new models, it's unlikely they will see further price reductions, at least in the short term.”