Used Electric Car Prices Fall Below Diesel – Is This a Turning Point?
For the first time, used electric vehicles (EVs) in Ireland are proving more affordable than their diesel counterparts, according to a new report from DoneDeal Cars. This marks a significant shift in the automotive market, signaling a potential turning point for EV adoption.
The Price Gap Narrows
The analysis, based on a sample of used cars less than five years ancient listed on DoneDeal, reveals a median asking price of €28,825 for a typical three-year-old electric car. This compares favorably to the €35,893 price tag for a similar diesel vehicle. Petrol cars remain the most affordable upfront, averaging around €22,900 for a three-year-old model, but the difference between petrol and electric prices is shrinking.
Stabilization After a Turbulent Period
The decline in used EV prices isn’t expected to continue indefinitely. The report indicates that the sharp price drops experienced in recent years are now stabilizing. This stabilization follows a period of volatility triggered by falling new car prices, reduced purchase grants, and an increased supply of EVs entering the second-hand market.
Dr. Tom Gillespie, an economist and analyst for the DoneDeal Cars Price Index, believes the market is finding a “more sustainable level.” He notes that supply is improving and price movements are becoming more predictable after several years of fluctuation.
Running Costs: A Clear Advantage for EVs
Beyond the initial purchase price, the long-term running costs of EVs are proving attractive to motorists. Paddy Comyn, Head of Automotive Content and Communications at DoneDeal, highlighted that charging an average car covering 17,000 kilometers annually costs approximately €780, compared to €2,200 for petrol and €2,000 for diesel. What we have is particularly relevant given ongoing concerns about rising oil prices, exacerbated by geopolitical events.
Battery Warranties Ease Concerns
One lingering concern for potential EV buyers has been battery longevity. Still, automakers are increasingly addressing this issue by offering extended warranties. Some manufacturers now cover batteries for up to 160,000 km or roughly seven to eight years, providing greater peace of mind.
Shifting Supply Chains Post-Brexit
Ireland’s used car supply chain has undergone a transformation since Brexit. Imports from the UK have “fallen sharply” since 2019, while Japan has emerged as a major source of used car imports, now accounting for roughly half of all vehicles brought into the country. Interestingly, many of these Japanese imports are European brands originally sold in Japan before being re-exported.
Pressure Remains on the Lower End of the Market
While the overall market is stabilizing, there are “ongoing pressures” in the lower price segment. The cost of vehicles priced below €6,000 has risen by 7.6% year-on-year, indicating a continued shortage of affordable cars.
Frequently Asked Questions
What is driving the fall in used EV prices?
Falling new car prices, reduced purchase grants, and an increased supply of used EVs entering the market are the primary factors.
Are used EVs now cheaper than all other fuel types?
No, petrol cars remain the cheapest option upfront. However, EVs are now cheaper than diesel cars, and the gap with petrol is narrowing.
What about battery life?
Automakers are offering extended warranties on batteries, covering up to 160,000 km or seven to eight years, addressing concerns about longevity.
Where are used cars now being imported from?
Japan now accounts for roughly half of all used car imports into Ireland, replacing the UK as a major source.
Pro Tip: When comparing prices, remember to factor in potential savings on fuel and maintenance costs when considering an EV.
Explore more articles on sustainable transportation and the future of the automotive industry here.
