Second-hand electric vehicle prices in the UK have declined at the sharpest rate in Europe this year, despite a boom in new EV sales sparked by rising fuel costs as a result of the Middle East war.
Industry executives warn that the influx of EVs from Chinese brands and the UK government’s ultra-ambitious sales targets will make it even harder for banks and leasing companies to forecast the residual value of EVs, a key measure for customers securing finance to buy a car.
As of April 1, the residual value of three-year-old electric cars in the UK was 38 per cent of their original list price. That average compared with more than 46 per cent in Germany, Spain and France, according to research firm Indicata. The residual value of petrol vehicles was 45 per cent and 51 per cent for plug-in hybrids in the UK.