When someone buys a new car, the value will naturally decrease over time given the wear and tear of the vehicle, as well as the mileage and age. But, for some electric car owners, they could be seeing the value of their car depreciate at twice the rate of petrol cars.
According to a new study, EVs on average will lose 51 percent of their purchase value from 2020 to 2023, compared to just 37 percent for petrol vehicles.
This equates to a massive £15,220 loss for electric car owners, with petrol drivers seeing a decrease of £9,901.
The data, from ChooseMyCar.com, used a comparison of new car prices three years ago compared to their value now.
The higher the original purchase price of the car, the bigger the loss, with the Tesla Model S losing £25,000 in value in just three years – a 46 percent drop.
However, entry-level EVs like the Nissan Leaf are also losing a massive amount of value in such a short space of time.
The Leaf’s value dropped by £13,000 – or 58 percent – despite it being one of the most popular small EVs on the market.
Other popular cars like the Hyundai Ioniq and BMW i3 saw large depreciation rates as well with 67 percent and 64 percent respectively.
Nick Zapolski, founder of ChooseMyCar.com, said: “Our research shows yet another blow for EV owners, on top of many other issues that have come to light recently.
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“Not only are the EVs themselves not holding value, the price of electricity itself has zoomed up, meaning running the cars is not as economical as it once was.”
The Government previously offered the Electric Vehicle Homecharge Scheme, which enabled drivers to save money on the installation cost of a home EV charger.
It was discontinued over a year ago, with many calling on the Government to reintroduce the scheme to help motorists switch over to electric vehicles.
Mr Zapolski said the hundreds of pounds saved on installing the home charger now looked “insignificant’ compared to the thousands of pounds lost in value.
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He added: “Home charge points are expensive to install (if you even had the necessary driveway to allow that) and there has been uproar about the availability and reliability of public charge points.
“On top of that, recent decisions made by the Government mean that some of the initial incentives to encourage EV ownership are being discontinued, such as lower tax and free entry into ULEZ zones.
“The Government really needs to take action if it wants to continue to push the idea of EVs onto the consumer, as currently the cons of EV ownership threaten to outweigh the pros.”
Data from the Society of Motor Manufacturers and Traders (SMMT) shows there are more than 1.1 million electric cars on the road in the UK.
Car ownership levels increased for the first time since 2019 to new record levels, with 40.7 million vehicles on the road.
Plug-in vehicles now make up more than three percent of the total UK vehicle fleet, thanks in part to the rise of electric vehicles.
There are still concerns about the rollout of public EV charging stations, with some experts predicting that the UK needs to increase installations massively to meet 2030 targets.
A new group of 18 of the biggest charge point operators have recently created ChargeUK, and pledged £6billion to install more charging stations.
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