Here’s how to sell an electric vehicle

By 2030, the sale of new fossil-fuel cars and vans will be banned, meaning sales of new and used electric vehicles (EVs) are expected to grow rapidly.

Over the past few years, the UK has seen a substantial increase in the number of electric and plug-in hybrid vehicles sold. Indeed, according to the latest car sales in the UK, they increased in 2021 by 76.3% compared to the previous year.

What does the electric vehicle market look like in the UK?

The electric vehicle market is growing at a rapid pace – with many motoring professionals now suggesting the sale of fossil fuel cars and vans has already peaked in the UK.

In February 2022, there were over 420,000 purely electric cars on UK roads and over 780,000 plug-in models. With the sale of new petrol and diesel cars set to be banned in the UK by 2030, sales of electric vehicles are set to increase exponentially as the UK government plans to make the country carbon neutral by 2050.

With growing consumer demand, increased interest in electric vehicles, and continued government support, if you’re considering selling your electric vehicle, now is definitely a good time to find a great deal. The used electric vehicle market is growing rapidly as buyer demand increases.

With so many drivers switching to electric cars, it might seem like an odd time to sell – but with such high demand, you could get a good return if you choose to sell now.

Why should you sell your EV?

There can be many reasons to sell your electric vehicle. With the performance of electric vehicles constantly improving, perhaps you are looking to upgrade to an electric model with a longer range? Or maybe your battery has degraded and your EV is no longer performing as you would expect? Maybe you’ve even decided you’d rather go back to a new petrol or diesel car before the 2030 ban?

With demand on the rise, you can expect a good selling price for a used electric vehicle. However, selling an electric car can sometimes be tricky, with a few things to consider, depending on how you bought it.

How is selling an electric vehicle different from selling a fossil fuel car?

Typically, when you buy — or take out financing for — a traditional fossil-fuel vehicle, the sale will include the batteries for the car or van. Whereas, with many electric vehicle sales, there’s the choice of buying or financing the whole car, or paying for the car and leasing the battery separately.

If you decided to lease, this means that if the vehicle’s lithium-ion battery degrades significantly, the company that leased to you would replace it. However, that also means that while you own the car, you don’t own the battery.

When you’ve just sold, however, having a car with a leased battery can make it problematic. The resale values ​​of purely electric cars are generally not helped by some automakers, like Renault, which retain ownership of the car’s battery. Many electric car advertisements do not specify whether the asking price of the car includes the battery or whether it is to be rented. Naturally, this can be frustrating for potential buyers.

For some makes and models of cars, battery leasing is not an option. Teslas and BMW i models, for example, will still have the battery included. Other models, such as the Nissan Leaf and Renault Zoe, will typically be purchased with a battery lease – although some owners choose to purchase the battery outright.

The cost of lithium-ion batteries – traditionally the most expensive components of electric vehicles – has seen a dramatic price drop in recent years. Energy sector researchers Bloomberg New Energy Finance (BNEF) say that the decline in lithium-ion battery prices between 2010 and 2019 was 87%. If this trend continues, electric vehicles should reach price parity with new fossil-fuel vehicles between 2025 and 2029, just in time for the switch to electric.

Do electric vehicles hold their value well?

As with fossil fuel vehicles, electric vehicles are subject to depreciation. In the UK, the decline in value of electric vehicles varies between makes and models, but generally represents a loss in value of between 15 and 35% in the first year and up to 50% in the third year. This rapid depreciation then slows after the third year.

As with fossil fuel vehicles, the main factors that will cause this depreciation will be age and mileage. Unless it’s a classic car, as a general rule, the older a car is, the lower its market value will be. Likewise, a car with high mileage will generally be worth less than the same model with fewer miles on the odometer, simply because mileage is a key indicator of a car’s overall condition.

Electric vehicles generally hold their value better than gas-powered cars, which generally depreciate faster. However, diesels have seen the fastest depreciation in recent years, in part due to the controversy surrounding the diesel emissions scandal.

However, for those looking for a used electric car, depreciation can be a good thing because it means they can buy a three-year-old electric vehicle model that is in great condition – but will have lost a large percentage of its original market value.

Is it a good time to sell an EV?

Adoption of electric vehicles over the past year is expected to continue (and grow), but for a true mass market, this requires automakers to commit to providing a more diverse range of electric vehicles at more affordable prices. .

Although the Tesla 3 was the best-selling car in the UK last year, the model is not affordable for many car buyers, and the automaker that will gain the most market share over the the next decade will likely be one that produces efficient and environmentally friendly cars. models – and manages to bridge the accessibility gap for those on a tighter budget.

In the short term, the high cost and limited production of EV models means there has been a clear lack of spillover into the used car market, which is helping to keep EV values ​​down. raised. Therefore, for owners bringing virtually any EV model to market, it remains – at least for now – a seller’s market.

Where is the best place to sell an electric vehicle?

With high demand, it’s now easier than ever to sell your electric vehicle and find a good price.

It’s quick and easy to sell your electric car with Motorway, and they’ll help you every step of the way. Simply enter your electric vehicle registry on their website and you will receive an instant valuation. They will then ask you a few simple questions about your car and walk you through the photos you need to take to complete your vehicle profile. This can usually be done from your phone and within minutes.

Your electric car will then be auctioned daily online, where it will be presented to Motorway’s nationwide network of over 5,000 verified car dealers, who will compete to offer you their best price.

In less than 24 hours, you’ll receive your best offer – and, if you’re happy with the sale, your car will be collected from your doorstep free of charge and the money quickly transferred to your bank account.

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