Electrical automobiles are beginning to attain worth parity with their ICE counterparts, in keeping with a brand new white paper launched by INDICATA.
Entitled ‘Reaching used BEV and ICE automobile worth parity’ the white paper tracks the used retail automobile costs of all gasoline sorts from 2020-2024.
This contains utilizing INDICATA knowledge to trace used costs of 5 well-liked BEVs from Citroen, MG, Vauxhall, Peugeot and Hyundai in opposition to their equal ICE fashions throughout 2023 and 2024.
“Worth parity is significant for BEVs within the used market as customers at the moment are being supplied all the most recent gasoline sorts at comparable costs, the place earlier than used BEVs had been commanding a 25-30% worth premium which put consumers off going electrical,” defined Dean Merritt, INDICATA UK’s head of gross sales.
“Worth parity is fuelling demand simply because the volumes of used BEVs, notably ex-fleet automobiles, are rising which is nice information for the whole trade. In some circumstances, used BEVs at the moment are cheaper than their equal ICE fashions,” he added.
The INDICATA white paper exhibits 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 practically new used BEVs into the market which coincided with rising volumes of two and three-year ex-PCP, leasing and wage sacrifice BEVs. This triggered 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% through 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 worth parity in June 2023 at which level BEVs turned value greater than equal petrol fashions. That’s the way it stayed till each gasoline sorts reached worth 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 short time interval.
MG ZS BEV v ZS petrol at two years and 20,000 miles
Electrical ZS costs have been constantly forward of used ZS petrol costs by round £1,250 since June 2023. This pattern 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 worth parity with its diesel equal in Could 2023 at £17,400 however costs continued to fall. As of March 2024, BEVs had 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 popularity meant drivers paid extra for used Kona BEVs throughout 2023. That pattern 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 popularity and drivers are ready to pay for them than ICE automobiles, however usually our knowledge exhibits costs have moved a lot nearer collectively. Within the case of Peugeot 208 BEV and petrol fashions, costs had been similar on the finish of March 2024 whereas there was just some hundred kilos distinction between the Corsa BEV and diesel fashions on the identical age and mileage,” mentioned Merritt.
