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The Irish Sun
29-05-2025
- Automotive
- The Irish Sun
Warning to EV drivers as cars' value PLUMMETS after just two years – are you set to lose thousands?
EV DRIVERS face losing thousands in the first two years of buying a car as manufacturers scramble to meet net zero targets, experts have warned. The average electric vehicle will reportedly retain just 49 per cent of its value after 24 months - a dramatic dip on the 83 per cent in 2022. Advertisement 2 Electric vehicles are becoming a much less secure bet if consumers or companies are looking to resell, compared to the more robust petrol/diesel market Credit: Getty 2 Many are pointing towards the governments "zero emission vehicle mandate" to explain the drop in second hand EV prices Credit: Getty Diesel and petrol cars, in comparison, typically retain 70 per cent of their value, a whopping 20 per cent more than their supposedly higher-tech counterparts. This collapse in the second hand EV market has likely been triggered by a trend of mass-discounts applied by car markers trying to meet government net zero standards for EV sales. The governments "zero emission vehicle mandate" rules that 80% of new cars sales must be EVs by 2030, with the goal of 100% by 2035. If manufacturers fail to meet this target, they may be liable for a cash fined levied according to the number of vehicles short they are. Advertisement Read more in Electric Cars The EV market is also being affected by a steep rise in competition, with cheaper models slashing the average price from nearly £40,000 down to less than £25,000 between 2022-2025, according to Autotrader. Philip Nothard, of Cox Automotive Europe, However, Mr Nothard also said: " The current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile. 'The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model. Advertisement Most read in Motors 'This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.' Mr Nothard added that "middle-aged" EVs, between three to five years old, were holding their value considerably better in recent years, only dipping 15% in resale price. The first-ever all-electric MINI JCW Aceman Discounting of new EVs has seen £4 billion slashed from price tags last year, amounting to an average of £11,000 per vehicle, according to the Society of Motor Manufacturers and Traders. Although these tumbling prices are good for consumers, the rate of reductions has sparked concern in elements of the car industry. Advertisement Fleet operators, such as car rental companies, are particularly vulnerable to these market changes. Accounting for two thirds of all new car sales, car rentals usually buy their vehicles new every few years, relying on the resale market to makeup some of these costs. With this market plummeting, companies are have to take deep cuts to profits when updating their fleets. I n 2023, the EV leasing firm Onto fell into administration after it was forced to write down the value of its 7,000-car fleet by £21m that year. Advertisement The British Vehicle Rental & Leasing Association (BVRLA) last year warned that many similar companies were experiencing heavy losses when reselling EVs because of this 'unsustainable' depreciation. Consumers may have to foot some of these rising costs in order for leasing companies to remain trading positively. The BVRLA has since made a plea to the government for intervention, calling for market stimulus measures to prop up faltering industries.
The Sun
29-05-2025
- Automotive
- The Sun
Warning to EV drivers as cars' value PLUMMETS after just two years – are you set to lose thousands?
EV DRIVERS face losing thousands in the first two years of buying a car as manufacturers scramble to meet net zero targets, experts have warned. The average electric vehicle will reportedly retain just 49 per cent of its value after 24 months - a dramatic dip on the 83 per cent in 2022. 2 2 Diesel and petrol cars, in comparison, typically retain 70 per cent of their value, a whopping 20 per cent more than their supposedly higher-tech counterparts. This collapse in the second hand EV market has likely been triggered by a trend of mass-discounts applied by car markers trying to meet government net zero standards for EV sales. The governments "zero emission vehicle mandate" rules that 80% of new cars sales must be EVs by 2030, with the goal of 100% by 2035. If manufacturers fail to meet this target, they may be liable for a cash fined levied according to the number of vehicles short they are. The EV market is also being affected by a steep rise in competition, with cheaper models slashing the average price from nearly £40,000 down to less than £25,000 between 2022-2025, according to Autotrader. Philip Nothard, of Cox Automotive Europe, told the Telegraph that the price of EVs peaked in 2022 due to the pandemic putting pressure on global supply chains. However, Mr Nothard also said: "The current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile. 'The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model. 'This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.' Mr Nothard added that "middle-aged" EVs, between three to five years old, were holding their value considerably better in recent years, only dipping 15% in resale price. Discounting of new EVs has seen £4 billion slashed from price tags last year, amounting to an average of £11,000 per vehicle, according to the Society of Motor Manufacturers and Traders. Although these tumbling prices are good for consumers, the rate of reductions has sparked concern in elements of the car industry. Fleet operators, such as car rental companies, are particularly vulnerable to these market changes. Accounting for two thirds of all new car sales, car rentals usually buy their vehicles new every few years, relying on the resale market to makeup some of these costs. With this market plummeting, companies are have to take deep cuts to profits when updating their fleets. In 2023, the EV leasing firm Onto fell into administration after it was forced to write down the value of its 7,000-car fleet by £21m that year. The British Vehicle Rental & Leasing Association (BVRLA) last year warned that many similar companies were experiencing heavy losses when reselling EVs because of this 'unsustainable' depreciation. Consumers may have to foot some of these rising costs in order for leasing companies to remain trading positively. The BVRLA has since made a plea to the government for intervention, calling for market stimulus measures to prop up faltering industries.
Scottish Sun
29-05-2025
- Automotive
- Scottish Sun
Warning to EV drivers as cars' value PLUMMETS after just two years – are you set to lose thousands?
The fall in price may be down to a rush for net zero targets ELECTRIC SHOCK Warning to EV drivers as cars' value PLUMMETS after just two years – are you set to lose thousands? Click to share on X/Twitter (Opens in new window) Click to share on Facebook (Opens in new window) EV DRIVERS face losing thousands in the first two years of buying a car as manufacturers scramble to meet net zero targets, experts have warned. The average electric vehicle will reportedly retain just 49 per cent of its value after 24 months - a dramatic dip on the 83 per cent in 2022. Sign up for Scottish Sun newsletter Sign up 2 Electric vehicles are becoming a much less secure bet if consumers or companies are looking to resell, compared to the more robust petrol/diesel market Credit: Getty 2 Many are pointing towards the governments "zero emission vehicle mandate" to explain the drop in second hand EV prices Credit: Getty Diesel and petrol cars, in comparison, typically retain 70 per cent of their value, a whopping 20 per cent more than their supposedly higher-tech counterparts. This collapse in the second hand EV market has likely been triggered by a trend of mass-discounts applied by car markers trying to meet government net zero standards for EV sales. The governments "zero emission vehicle mandate" rules that 80% of new cars sales must be EVs by 2030, with the goal of 100% by 2035. If manufacturers fail to meet this target, they may be liable for a cash fined levied according to the number of vehicles short they are. The EV market is also being affected by a steep rise in competition, with cheaper models slashing the average price from nearly £40,000 down to less than £25,000 between 2022-2025, according to Autotrader. Philip Nothard, of Cox Automotive Europe, told the Telegraph that the price of EVs peaked in 2022 due to the pandemic putting pressure on global supply chains. However, Mr Nothard also said: "The current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile. 'The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model. 'This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.' Mr Nothard added that "middle-aged" EVs, between three to five years old, were holding their value considerably better in recent years, only dipping 15% in resale price. The first-ever all-electric MINI JCW Aceman Discounting of new EVs has seen £4 billion slashed from price tags last year, amounting to an average of £11,000 per vehicle, according to the Society of Motor Manufacturers and Traders. Although these tumbling prices are good for consumers, the rate of reductions has sparked concern in elements of the car industry. Fleet operators, such as car rental companies, are particularly vulnerable to these market changes. Accounting for two thirds of all new car sales, car rentals usually buy their vehicles new every few years, relying on the resale market to makeup some of these costs. With this market plummeting, companies are have to take deep cuts to profits when updating their fleets. In 2023, the EV leasing firm Onto fell into administration after it was forced to write down the value of its 7,000-car fleet by £21m that year. The British Vehicle Rental & Leasing Association (BVRLA) last year warned that many similar companies were experiencing heavy losses when reselling EVs because of this 'unsustainable' depreciation. Consumers may have to foot some of these rising costs in order for leasing companies to remain trading positively. The BVRLA has since made a plea to the government for intervention, calling for market stimulus measures to prop up faltering industries.
Telegraph
29-05-2025
- Automotive
- Telegraph
Electric cars halve in value after just two years
Cox Automotive said the faster rate of depreciation among 'nearly-new' EVs was being driven by the discount wars being fought by manufacturers, which have been aggressively cutting prices to help them meet net zero sales targets. Under the so-called zero emission vehicle (ZEV) rules which are mandated by the Government, 28pc of new car sales are meant to be electric this year with the target set to rise gradually until it reaches 80pc in 2030. The falling value of EVs is also being accelerated by the growing range of cheaper models available on the market. The average price of a second-hand EV fell from £39,849 to £24,908 between April 2022 and April 2025, according to Autotrader. Philip Nothard, of Cox Automotive Europe, said used-car prices reached a peak in 2022 as the pandemic squeezed global supplies of new vehicles. But he added: 'The current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile. 'The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model. 'This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.' Compared with nearly-new models, Mr Nothard said that 'middle-aged' EVs between three and five years old were faring better. These only saw their prices fall by about 15pc over a similar period when they were sold at auction, Mr Nothard said. Brands made price cuts worth £4bn on new cars last year, equivalent to a discount of about £11,000 per car, according to the Society of Motor Manufacturers and Traders. While discounting is a common practice, the level of discounts on EVs has been higher than those for petrol and diesel cars, according to Autotrader. Falling EV values are positive for consumers, but the accelerated drop has become a cause of concern within the car industry. Fleet operator fears Fleet operators such as car rental companies, which accounted for two thirds of all new car purchases last year, tend to buy new vehicles and sell them on after two to three years. The growing drop in resale values means they risk recovering far less of their initial investment than anticipated. In 2023, the EV leasing firm Onto collapsed into administration as it was forced to write down the value of its 7,000-strong fleet by £21m in a single year. The British Vehicle Rental & Leasing Association (BVRLA) last year warned that many fleet operators were having to swallow large losses when reselling EVs because of 'unsustainable' depreciation. It said rising depreciation costs could force leasing companies to raise prices for consumers, in order to better shield lenders from losses. The BVRLA has called for the Government to intervene with market stimulus measures, including potentially a VAT cut or grants for used car buyers. Mr Nothard said: 'The used market is a crucial source of profitability for the automotive sector. 'Within increasingly volatile market conditions, the strength and consistency of used operations are crucial.
Yahoo
21-03-2025
- Automotive
- Yahoo
UK and European vehicle remarketing bodies strengthen ties
The UK's Vehicle Remarketing Association (VRA) and the Car Remarketing Association of Europe (CARA) have signed a new agreement committing to closer collaboration. The memorandum of understanding approved by both boards recognises 'the benefits of co-operation in the future to the benefit of our members'. It grants each organisation corporate membership of the other. It also recognises the potential for swapping best practice ideas, sharing expertise, campaigning together on key issues affecting the remarketing sector internationally and potentially holding joint events. Philip Nothard, VRA chair, said: 'We've been talking to CARA on an informal basis for some time and it is clear that we have much in common as industry bodies and much to gain from working together in a manner that adds value for members. 'The memorandum of understanding, which has the backing of directors across both organisations, is an agreement that will allow us to investigate future areas of co-operation. This is as an exciting development with significant potential.' Luis Maria Perez-Serrano, chair at CARA, added: 'CARA and the VRA fulfil very similar roles in the UK and Europe, providing a valuable forum for the remarketing sector in their respective territories. We welcome this agreement, the opportunity to work side-by-side and establishing closer links.' CARA was created in 2015 as an international non-profit organisation to support the European market for used cars, with a membership active in sectors such as car manufacturing, fleet management, leasing, car auctions, car service providers and car data management. Launched in 2010, the VRA is an industry body for companies involved in all aspects of remarketing used cars. Together, its members handle, sell, inspect, transport or manage more than 1.5 million used vehicles every year. "UK and European vehicle remarketing bodies strengthen ties" was originally created and published by Motor Finance Online, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
