Used EV prices fall 12pc amid flood of cheap Chinese rivals

THE value of second-hand electric cars has tumbled since the start of the year as Chinese manufacturers flood Britain with cheap new models.

The average price of the 20 most popular used electric and hybrid vehicles fell 12pc in the three months to March compared with a year ago, says the AA.

Supply of new EVS has begun to exceed demand as interest in greener cars wanes amid heightened concerns about charging times and range limits.

While EV prices remain much higher than petrol and diesel equivalents, China is attempting to steal market share in the West by rolling out cheaper alternatives. Models from BYD and Chinese-owned MG sell for around £25,000 in the UK, while a new Model 3 Tesla costs £39,000.

The EU is currently looking into what it says are unfair subsidies provided by Beijing to Chinese manufacturers amid the surge in cheap imports, with the UK contemplating a similar investigation.

Sales of used EVS have been further stifled by uncertainty surrounding the lifespan of batteries.

Prices for the most popular second-hand combustion engine models also fell 9pc year-on-year in the first quarter as easing chip shortages boosted availability,

Carmakers had previously struggled to meet demand for new vehicles after Covid disrupted supply chains and slowed the distribution of microchips.

However, with chip volumes now picking up, buying a low-mileage used model is no longer as attractive an option as a year ago.

This led to new car sales surging 26pc in February, according to the Society of Motor Manufacturers and Traders.

AA president Edmund King said: “There is now a better balance between supply and demand, bringing used car prices back down. This isn’t the case across the board and price depreciation is slower among vehicles in greatest demand, Audis for example.”

The AA’S data show that the Nissan Qashqai, built in Sunderland, was Britain’s most popular used-car purchase in the period, replacing the Ford Fiesta.

Prices for the leading 20 models also fell compared with the three months to December, with only four models showing an increase. The Toyota Yaris was the most popular second-hand EV or hybrid car in the first quarter.