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Second hand EV prices are going through the floor, as nobody wants to buy them.

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'The Telegraph has the story:

EVs are losing more than half their value in the first two years of ownership amid a wave of heavy discounting by carmakers.

A typical EV now retails at 50% of its value after 24 months, a sharp decline from 83% as recently as 2022, according to Cox Automotive.

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For a new car bought for $40,000, this would translate to a value of just $19,600 after two years.

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This compares with an average of 30% for diesel and petrol cars.

Full story here.

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Certainly, heavily discounted new car prices must push down second hand prices, but that is a long way from being the whole story.

I have made some checks on the Vauxhall Mokka prices via Carwow.

They come up with the following current prices for the basic electric and petrol versions:

Electric Mokka:

List – £32255

Discounted – £25747

Second Hand, 3 Years Old with 30,000 miles – £10995

Depreciation from Discounted Price – 57%

Petrol Mokka:

List – £25740

Discounted – £22572

Second Hand, 3 Years Old with 29,000 miles – £15640

Depreciation from Discounted Price – 31%

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The prices broadly back up the Telegraph’s, which are set against 2 year old cars.

The second hand prices are also the buyer price, not the trade in value.

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But what is astonishing is that drivers would rather pay £5000 more for a second hand petrol car than the electric equivalent.

That has nothing to do with “discounted new prices”, as the new electric remains more expensive in that regard.

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There is obviously a glut of second hand EVs beginning to come on to the market, which will depress values even further. But there is little appetite amongst potential private buyers.

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Obviously there is the longer term issue of battery life, but surely this won’t be in the minds of people buying a 3 year old car.

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On the contrary, it is pretty obvious that very few drivers actually want an EV.

One particular issue for the second hand market is that many lower income drivers have no off street parking, meaning they cannot charge at home.

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All of this is a huge, flashing warning sign for anybody considering buying a new EV – don’t expect to get much money back for it when you trade it in!!

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!!!!!!YOU HAVE BEEN WARNED!!!!!!