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The second-hand value of EVs

09/11/21

Costs in comparison to gasoline cars are an important issue for many who are considering buying an EV. A big part of that is also the predicted second-hand value of the EV. Numbers from resellers indicate that EVs keep good second-hand value, even as more used electric cars enter the second-hand market.

Let’s first look at the overall costs, where electric cars still cost more to buy than gasoline cars. But the difference is less for each year and different types of state subsidies also contribute to reducing the difference.

Electric cars have lower operational costs than gasoline cars. This is due to the electric engine being more effective in managing energy than the combustion engine. If you have the option to charge at home, the mileage is significantly lower for EV-owners than for owners of gasoline cars. EVs also have lower service costs, as the wear and tear of the engine is less and they do not need to replace as many parts in the engine.

How does the second-hand value look for EVs?

The swift development in electric cars have resulted in some worry regarding the second-hand value. Will the car you buy be seen as dated when it is time to sell it? The truth of the matter is that EVs have shown to be attractive in the used car market and in most cases keep their value.

The site Wayke earlier this year presented an overview of the electric cars with the best second-hand value. The overview shows that the prices for used electric cars increased by 25 percent in the last year, as more people choose EVs. According to the site, Tesla is the EV which best keeps its value. In fact, it has only reduced its value by four percent in the last three years. Also other EVs keep good value.

EVs that best keep their second-hand value according to Wayke (value reduction in percentage after 10 000km)

  1. Tesla Model S (4%)
  2. Tesla Model X (5%)
  3. Hyundai IONIQ (10%)
  4. Kia Soul EV (10%)
  5. Volkswagen e-Golf (10%)

Blocket, a leading second-hand site for cars, states that the number of ads for used EVs have increased by 111 percent during the first seven months of this year, compared to last year. The average price of an EV on the site has also increased by 5 percent during the summer, compared to last year. In the last year, a Tesla Model X from 2017 has on average been sold for 77 000 Euro, while a Tesla Model 3 from 2019 on average has sold for 53 000 Euro.

While many still might prefer to buy a new EV and get the latest technology, more mature technology ahead will contribute to further improving the second-hand value of EVs. And as more people install charging stations at home, the barrier and costs are further reduced for households who invest in electric cars.