Electrical automobiles are beginning to attain value parity with their ICE counterparts, in keeping with a brand new white paper launched by INDICATA.
Entitled ‘Reaching used BEV and ICE automobile value parity’ the white paper tracks the used retail automobile costs of all gas sorts from 2020-2024.
This consists of utilizing INDICATA knowledge to trace used costs of 5 fashionable BEVs from Citroen, MG, Vauxhall, Peugeot and Hyundai in opposition to their equal ICE fashions throughout 2023 and 2024.
“Value parity is important for BEVs within the used market as customers are actually being provided all the newest gas sorts at related costs, the place earlier than used BEVs have been commanding a 25-30% value premium which put patrons off going electrical,” defined Dean Merritt, INDICATA UK’s head of gross sales.
“Value parity is fuelling demand simply because the volumes of used BEVs, significantly ex-fleet automobiles, are growing which is sweet information for your complete trade. In some instances, used BEVs are actually cheaper than their equal ICE fashions,” he added.
The INDICATA white paper reveals costs of used BEVs peaking in Q3 2022 the place demand and the chip scarcity weakened provide. However then costs fell as OEMs pushed discounted new and almost new used BEVs into the market which coincided with rising volumes of two and three-year ex-PCP, leasing and wage sacrifice BEVs. This brought on costs to crash by over 30%.
In Q1 2024 there have been indicators that used BEV costs have stabilised as costs fell by simply 1.3% throughout the three-month interval, which has helped shut the hole between BEV and ICE costs as INDICATA’s knowledge has revealed.
Peugeot 208 BEV v 208 petrol at two years and 20,000 miles
Peugeot 208 BEV and petrol fashions reached value parity in June 2023 at which level BEVs turned value greater than equal petrol fashions. That’s the way it stayed till each gas sorts reached value parity once more in March 2024 at £14,250.
Vauxhall Corsa BEV v Corsa diesel at two years and 20,000 miles
From January 2023 the Corsa BEV was value greater than the equal diesel mannequin by round £7,000. As of March 2024, the diesel Corsa was value £16,000 and the Corsa BEV £15,250, which displays how far market costs have moved on sure fashions in a quick time interval.
MG ZS BEV v ZS petrol at two years and 20,000 miles
Electrical ZS costs have been persistently forward of used ZS petrol costs by round £1,250 since June 2023. This development has continued into 2024 with the ZS BEV value £15,000 in contrast with £13,750 for the petrol mannequin.
Citroen C4 BEV v C4 diesel at two years and 20,000 miles
The Citroen C4 BEV reached value parity with its diesel equal in Might 2023 at £17,400 however costs continued to fall. As of March 2024, BEVs have been value £14,200 in opposition to £16,200 for the diesel.
Hyundai Kona BEV v Kona petrol at two years and 20,000 miles
Hyundai’s sturdy zero emission repute meant drivers paid extra for used Kona BEVs throughout 2023. That development continued into 2024, with Kona BEVs value £19,700, £4,700 greater than the equal petrol mannequin.
“Some manufacturers have already constructed up a powerful BEV repute and drivers are ready to pay for them than ICE automobiles, however typically our knowledge reveals costs have moved a lot nearer collectively. Within the case of Peugeot 208 BEV and petrol fashions, costs have been similar on the finish of March 2024 whereas there was only a few hundred kilos distinction between the Corsa BEV and diesel fashions on the identical age and mileage,” stated Merritt.