How Used EV Values Are Dropping Like Crazy!

carwow
16 May 202415:25

TLDRThe video discusses the significant depreciation of used electric vehicle (EV) values within the last year, highlighting the financial impact for EV owners. Using data from CAP HBI, the video lists the top 10 EVs with the largest drop in value, comparing them to similar petrol and diesel models. Notable examples include the Porsche Taycan, which experienced a 20% depreciation in trade-in value, and the Kia EV6 with a 26.7% drop. The video also mentions the Audi e-tron GT, Mercedes EQC, and the Lexus UX, with the latter showing a 32.1% decrease in value. The Citroen e-C4 X tops the list with a 32.6% drop. The video suggests that the overall EV market has not performed as well as internal combustion engine vehicles in terms of resale value, with some exceptions like the Genesis GV70, which has seen an increase in value. The content also provides advice on selling cars quickly and for a fair price through carwow's online auction platform.

Takeaways

  • 🚗 All cars depreciate in value once driven away from the dealership, but electric cars are facing particularly significant drops in value.
  • 📉 Carwow has partnered with CAP Hpi by SaaS to analyze used car values, specifically focusing on the substantial depreciation of secondhand electric cars in the UK.
  • 🔍 The data analysis compared the trading value of one-year-old electric cars with 10,000 miles on the clock in 2023 to the same for 2024, revealing a significant drop in value for some models.
  • 🏎️ The Porsche Taycan Turbo S experienced extreme depreciation, losing about £1,800 for each mile driven since new, with an average trade-in value drop of 20% over 12 months.
  • 🛑 The Kia EV6 saw a 26.7% drop in value from over £44,500 to less than £33,000 within a year, highlighting the rapid decrease in secondhand EV values.
  • 🚙 The trading value of a one-year-old Cupra Born with 10,000 miles dropped by 26.8%, from over £31,000 to less than £23,000 in the last year.
  • 📈 In contrast, the average trading value of a used Cooper Leon hybrid only dropped by 16.4% in the same period, showing that not all electrified vehicles are affected equally.
  • 🚨 The Audi e-tron GT's secondhand values dropped by 27%, from over £45,000 to just over £33,000, a significant decrease compared to the petrol and diesel versions of similar cars.
  • 📊 The Mercedes EQC and Renault e-Tech saw a 27.4% drop in secondhand values, with the EQC falling from just over £45,000 to less than £33,000 in a year.
  • 📉 The trading value of a one-year-old Mercedes EQB with 10,000 miles fell by 30.7%, from around £44,700 to £31,000, indicating a substantial decrease in the value of some electric Mercedes models.
  • 🏆 The Lexus UX took second place for the highest drop in value, with a 32.1% decrease, going from almost £31,300 to £21,300 for a one-year-old model with 10,000 miles.

Q & A

  • What is the general trend observed in the depreciation of electric vehicles (EVs) compared to traditional cars?

    -Electric vehicles have experienced a more significant drop in value compared to traditional cars with internal combustion engines. The depreciation rates for EVs are notably higher, with some models losing as much as 32% of their value within a year.

  • What is the depreciation rate for a one-year-old Porsche Taycan Turbo S with 10,000 miles?

    -The depreciation rate for a one-year-old Porsche Taycan Turbo S with 10,000 miles is about £18,000, which equates to approximately £1,800 for each mile driven.

  • How much has the trade-in value of a one-year-old Kia EV6 with 10,000 miles dropped in the last year?

    -The trade-in value of a one-year-old Kia EV6 with 10,000 miles has dropped by 26.7%, from over £44,500 to less than £33,000.

  • What is the average trading value drop for a used Cooper Leon hybrid compared to the Kia EV6 over the same period?

    -The average trading value of a used Cooper Leon hybrid dropped by 16.4%, which is less than the 26.7% drop for the Kia EV6 over the same period.

  • How does the depreciation of electric vehicles compare to that of petrol and diesel cars in the current market?

    -Electric vehicles have generally performed worse than internal combustion engine cars in terms of depreciation. While some petrol and diesel cars have seen their values drop, the percentage decrease is typically lower than that observed in the EV market.

  • What is the depreciation percentage for a one-year-old Audi R8 GT with 10,000 miles?

    -The depreciation percentage for a one-year-old Audi R8 GT with 10,000 miles is 27%, with the trading value dropping from over £45,000 to just over £33,000.

  • What is the depreciation rate for a one-year-old Mercedes EQC?

    -The depreciation rate for a one-year-old Mercedes EQC is 27.4%, with the average trading value falling from just over £45,000 to less than £33,000.

  • How much has the trading value of a one-year-old Genesis GV70 with 10,000 miles appreciated in the last year?

    -The trading value of a one-year-old Genesis GV70 with 10,000 miles has appreciated by 8% over the last year.

  • What is the depreciation percentage for a one-year-old Citroen e-C4 with 10,000 miles?

    -The depreciation percentage for a one-year-old Citroen e-C4 with 10,000 miles is 32.6%, with the value dropping from £28,890 to £14,580.

  • What is the average drop in trading value for a one-year-old Lexus UX with 10,000 miles?

    -The average drop in trading value for a one-year-old Lexus UX with 10,000 miles is 32.1%, with the value decreasing from almost £31,300 to just £21,300.

  • How does the carwow platform assist in selling a car quickly and for a fair price?

    -Carwow allows users to enter their car's registration for an instant approximate valuation. They can then provide more details and upload photos to set a fair reserve price. The car is entered into an online auction where trusted dealers bid on it. The process is free, and 93% of sellers surveyed reported getting the price they expected or more.

Outlines

00:00

🚗 Depreciation of Electric Cars in the UK

This paragraph discusses the issue of depreciation in electric cars, particularly in the UK. It mentions that while all cars depreciate, electric cars are facing a more significant problem. The speaker, Mat Watson, uses data from CAP HBI by Salera to analyze the drop in used car values over the past 12 months for various electric car models. The paragraph also highlights the Porsche Taycan's steep depreciation and compares it with other cars on the top 10 list, emphasizing the rapid decrease in secondhand values for some electric vehicles.

05:00

📉 Significant Depreciation in Electric Car Models

The second paragraph delves into the specific depreciation rates of electric cars compared to their petrol and diesel counterparts. It details the percentage drop in trade-in values for cars like the Kia EV6, Citroen e-Born, and the Volkswagen ID.3, and contrasts these with the lesser depreciation of similar hybrid and traditional fuel vehicles. The paragraph also promotes Carwow's service for selling cars quickly and at a fair price, providing a link for further information.

10:03

🚘 Depreciation of Luxury Electric Cars

This paragraph focuses on luxury electric cars and their depreciation rates. It discusses the Audi e-tron GT, Mercedes EQC, and Renault Manan e-Tech, highlighting their substantial drop in secondhand values over the last year. The paragraph also touches on the Chinese car brand Ora and its unstable values on the secondhand market. It concludes by comparing the EQB's depreciation with that of the Mercedes GLB, showing that electric models have not fared as well as those with internal combustion engines.

15:04

📈 Stable Values of Hybrid and Diesel Cars

The fourth paragraph contrasts the depreciation of electric cars with that of hybrid and diesel cars, which have shown more stable values. It discusses the BMW i7 and i4, Volvo C40, Toyota bZ4X, Subaru Sutora, Lexus RZ, and Lexus UX, detailing their respective drops in trading value. The paragraph emphasizes the better performance of internal combustion engine cars in terms of holding their value, with the exception of the electric Genesis GV70, which has seen an increase in value. It concludes by noting that generally, the value of 1-year-old cars with 10,000 miles has decreased from the previous year due to normalization of supply issues.

Mindmap

Keywords

💡Depreciation

Depreciation refers to the loss in value a car experiences as soon as it is driven away from the dealership. It is a natural process that affects all vehicles, but the video emphasizes that it is particularly significant with some electric cars. In the context of the video, depreciation is the central theme as it discusses how the values of used electric vehicles have dropped significantly over the past year.

💡Electric Cars

Electric cars are vehicles that are powered by electric motors rather than internal combustion engines. The video focuses on the depreciation rates of various electric car models, highlighting that they tend to experience more rapid value drops compared to traditional petrol or diesel cars. Electric cars are the primary subject of the video's analysis.

💡Used Car Values

Used car values refer to the current trading value of a vehicle that is no longer new. The video presents data from Cap HBI to track how these values have changed over time, particularly for electric cars. The drop in used car values is a key point of discussion, with the video comparing the depreciation of electric cars to that of petrol and diesel cars.

💡Trading Value

Trading value is the amount for which a used car can be traded in or sold in the secondhand market. The video script provides specific figures for the trading values of various electric car models, both at the time of the video and 12 months prior. This term is crucial as it helps illustrate the extent of depreciation for each car model discussed.

💡Porsche Taycan

The Porsche Taycan is a specific model of electric car highlighted in the video for its significant depreciation. It is mentioned as an example to demonstrate the rapid loss in value that can occur with electric vehicles, with the video providing figures to show the drop in its trading value over a year.

💡Kia EV6

The Kia EV6 is one of the electric car models listed in the video that has suffered a substantial drop in its value. The term is used to illustrate the depreciation rates among different electric vehicles, with the Kia EV6 showing a significant decrease in its trading value from the previous year.

💡Supply Issues

Supply issues refer to the challenges and shortages in the market that can affect the prices of used cars. The video suggests that supply issues in 2023 may have artificially inflated used car prices, which are now normalizing, contributing to the observed depreciation. This term helps explain some of the market dynamics affecting car values.

💡Genesis GV70

The Genesis GV70 is mentioned as an exception to the trend of depreciation among electric vehicles. The video notes that the one-year-old, 10,000-mile version of this electric car model has actually increased in value, which contrasts with the overall trend of depreciation for electric vehicles.

💡null

null

💡Internal Combustion Engines

Internal combustion engines are the traditional type of engine that power most conventional cars, using fuel like petrol or diesel. The video compares the depreciation rates of electric cars with those of cars powered by internal combustion engines, noting that the latter have more stable secondhand trading values.

💡Hybrid Cars

Hybrid cars are vehicles that combine an internal combustion engine with an electric propulsion system. The video discusses the depreciation of hybrid cars in comparison to fully electric vehicles, indicating that hybrids have shown more stable used car values.

💡Carwow

Carwow is a platform mentioned in the video that allows car owners to sell their vehicles quickly and for a fair price through an online auction system. The term is used in the context of providing a solution for car owners looking to trade in their vehicles amidst the fluctuating values discussed in the video.

Highlights

Depreciation is a common issue for all cars, but it's particularly significant for some new electric vehicles (EVs).

Carwow partnered with CAP HBI by Salera to analyze used car values in the UK and how they've changed over the last year.

The Porsche Taycan Turbo S has experienced substantial depreciation, with the cost per mile driven reaching £1,800.

The Kia EV6 has seen a 26.7% drop in its used value over the last year.

The trading value of a one-year-old car with 10,000 miles has dropped significantly across several EV models.

The Citroën e-Born has a 28.9% drop in its average trading value since 2023.

Mercedes EQC and Renault e-Tech have seen a 27.4% decrease in their secondhand values in the last 12 months.

The trading value of a one-year-old BMW i7 with 10,000 miles has dropped by about 7.7% in the last year.

Volvo C40 owners face a 31% drop in their car's value over 12 months.

The Toyota bZ4X has seen its used value decrease by 32% compared to the previous year.

The Lexus UX has a 32.1% drop in value for a one-year-old model with 10,000 miles.

The Citroën C4 X has the largest drop in used values among EVs, with a 32.6% decrease in the last year.

EVs generally performed worse than internal combustion engine cars in terms of used values.

Supply issues in 2023 may have contributed to the higher used car prices, which are now normalizing.

The Genesis GV70 is an exception, with its one-year-old model with 10,000 miles worth 8% more than last year.

Carwow offers a platform for sellers to get fair prices and quick sales through online auctions with trusted dealers.

93% of sellers surveyed by Carwow said they got the price they expected or more.