Electric vehicles are currently leading the charge in UK automotive value loss. A report by Auto Express reveals that 15 of the 20 fastest-depreciating vehicles in the country are electric.
The 73% value collapse hitting the UK's top ten models
The UK automotive market is undergoing a significant correction regarding electric vehicle pricing. While the average vehicle in the UK loses about 45% of its value over three years, the models identified by Auto Express are losing significantly more.. The top ten models on this list are expected to lose between 69% and nearly 73% of their original price by the time they reach 36 months of age.
This trend suggests that the high initial premums once associated with electric technology are being aggressively corrected by market forces. As more manufacturers enter the space, the abundance of choice and heavy discounting is driving down the residual value of existing models.
Mercedes and Audi luxury saloons face massive part-exchange losses
High-end electric saloons are seeing some of the most dramatic drops in resale value according to the Auto Express analysis. For instance, the Mercedes EQS, which costs an average of £104,540, retains only 31% of its value after three years, leaving it worth just £32,375. Similarly, the Audi e-tron GT sees its average part-exchange value plummet to just £33,150 from an initial £107,875.
Even the Mercedes EQE, which rivals the BMW i5, sees its average part-exchange value drop to £26,850 from an average new price of £86,615. For owners of these premium vehicles, the financial hit of moving to a newer model is significantly higher than it would be for a driver of a traditional internal combustion engine vehicle.
Budget models like the Fiat 500e and Subaru Solterra are also feeling the pinch
Rapid depreciation is not limited to the luxury segment and is also impacting budget-friendly and mid-range models. The Fiat 500e, which has an average price of £28,035, is expected to be worth only £8,475 after 36 months. This demonstrates that even entry-level EVs are struggling to hold their value in the current climate.
The Subaru Solterra, a sister car to the Toyota bZ4X, also faces a steep decline.. Its £52,495 price tag could yield a part-exchange value of just £15,575 at the three-year mark, leaving owners with very little to show for their initial investment.
Why 3-year-old EVs are seeing a 28% price surge
Several questions remain regarding the long-term stability of the electric vehicle market and why certain segments are behaving so differently . While Auto Express attributes the rapid loss in value to increased choice and heavy discounting , it is unclear how much future battery technology advancements will further depress current model values.
There is also a notable divergence in the market that warrants closer inspection. While new EVs are losing value rapidly, data shared with This is Money shows that some three-year-old EVs have actually increased in price by as much as 28% in the last six montths. This raises questions about whether the most economically sensible way to own an electric vehicle has shifted entirely to the secondary market.
Comments 0