Electric car prices and values could further worsen this year, according to 52% of used car dealers surveyed by Startline Motor Finance.
The research, for Startline’s March Used Car Tracker, based on the views of 61 dealers, also found that 49% of dealers thought current demand was not high enough to support values.
Additionally, 42% said there were not enough advantages for consumers choosing electric cars, and 39% said more customers were choosing hybrid cars as a stepping stone towards full EVs. Also, 36% of dealers surveyed reported that stock supply was rising too quickly, and 24% thought EVs were still too expensive at current consumer prices.
However, these EV market concerns were not universal, with 11% of dealers surveyed believing EVs were becoming more attractive, 9% saying that current prices were sustainable, and 9% that general enthusiasm about electrification was rising.
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Used EV market could offer ‘bargains’
Paul Burgess, chief executive of Startline Motor Finance, said: “Electric car prices and values are already generally below petrol equivalents but these findings show that the majority of dealers believe they have further still to fall.
“Supply of these vehicles is increasing quite quickly and while consumer enthusiasm is also increasing, there’s a widespread feeling among dealers that a negative imbalance exists which will further drive down prices and values.
“This is bad news for anyone bearing the depreciation on a new electric car but good news for those buying a used one. There are some very real bargains in the market at the moment and, if our research is correct, there could be even bigger ones as the year progresses.”
Startline’s research, compiled by APD Global Research, also asked dealers when they expected prices and values for EVs to align with those of petrol, diesel and hybrid cars.
In response, 41% predicted that this would happen within one or two years, 46% said it would take three to five years, and 13% predicted that it would take longer than five years.
Burgess said: “It’s clear dealers believe that electric car prices and values will start to stabilise, and many believe this will happen relatively quickly. However, they still largely foresee much more turbulence in the shorter term.”