Electric cars’ value goes down by half after three years on the road

Researchers say electric cars are reaching 'unsustainable levels of depreciation'

AutoTrader, who carried out the research, said there were “unsustainable levels of depreciation” in the electric car market with prices of electric cars dropping 23pc in the last 12 months.

The online vehicle marketplace said a motorist buying a £50,000 electric car could expect to lose £24,000 in value over three years, while a similarly priced petrol car would only lose a fraction of that.

Their value has dropped significantly over the last year as a result Covid-related supply shortages and the rise in electricity bills. This also happened as petrol prices fell to their lowest in two years.

A statement from the website said: "With over 800,000 new electric cars registered between 2020 and 2023, supply returning to the used car market will only increase in 2024, and if demand does not keep up, electric cars could depreciate even further, undermining both consumer and retailer confidence."

Electric car prices may face even more pressure towards the end of the year as thousands of motorists return vehicles purchased on three-year leases and as manufacturers cut the price of new vehicles.

New electric cars however still remain a third more expensive than their petrol and diesel counterparts.

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