Used electric car values rose 1% at the three-year mark in September, according to new figures from Cap HPI.

September’s rise in EV values follows 24 consecutive months of downturns

The rise follows 24 consecutive months of downturns that have seen values chopped by around 60% and led the BVRLA to call on the Government to take action.

The Cap HPI data also reveals that nearly half of fully electric cars at the three-year point have seen their values increase this month, compared to just 11% last month. Of the rest, 29% of models have seen no change at all, while 19% have experienced a reduction in value.

Examples of BEV models that have seen value increases include the BMW i3 with a 5% increase, the Peugeot E-208 with 4.5%, the Kia Niro EV with 4% and the Nissan Leaf also with 4%.

Battery electric cars emerged as the top-performing fuel type in September, but despite the average improvement in values, the EV market remains nuanced, according to the experts at Cap.

Chris Plumb, senior valuations editor, remarked: “While it may be a little premature to say that the fortunes of some used BEVs have completely changed, it is encouraging to see that they are heading in the right direction, especially for those models that fall below the optimum retail sweet spot of under £18,000.”

He continued: “For several months now, we have been highlighting the excellent value-for-money that used BEVs offer to both consumers and retailers. Interestingly, the best-performing sector of electric cars in September was the lower medium or C-sector, which saw values increase by over 2%.”

The overall used car market saw a strong trade and retail performance in September, with average used car values at three-years/60,000 miles increasing by 0.2%. This contrasts with an average seasonal downturn of 0.2% (excluding Covid years) for the month.

September’s small rise in used values continues the stable trend observed throughout the year. So far, every month in 2024 has seen a more positive monthly movement at three years/60,000 miles than the seasonal average.

Cap HPI said the data highlights the stability of the used market in 2024, particularly throughout the summer period.

Chris Plumb, senior valuations editor at Cap HPI

Chris Plumb remarked: “The decrease in prices during the last quarter of 2023 helped alleviate some of the excessive inflation during the price increases of 2021. However, prices did not completely return to their previous levels, remaining some 15% above where they were at the start of 2021. It appears that used car prices reached a reasonable point for both retailers and consumers at the beginning of 2024, leading to a period of overall stability since then.

“It is important to note that there are certain nuances within this trend, and in cases where supply exceeds demand for specific models and fuel types, values have certainly declined. Nevertheless, on average, used car prices in 2024 have remained stable.”

Cap data also reveals that September values increased by 0.1% at the one-year/10,000-mile mark. Additionally, there was a positive adjustment of 0.2% at the five-year/80,000-mile mark. The only age profile to report a downturn was at 10 years/100,000 miles, with a negligible movement of 0.4% – but this is still a marked improvement aover previous months.

The supercar sector saw the largest decrease in September, with a reduction of 2%. This was followed by a decline of 1.8% in the coupé-cabriolet sector, and a decrease of 1.4% in the convertible sector. But Cap noted that these downward movements are relatively positive when considering the seasonal nature of these sectors during this time of year when they might be expected to reduce by more.

SUVs were the strongest-performing sector, registering an average movement of 0.6% at three years old. Medium-sized SUVs experienced the largest increase of 0.8%, followed by small SUVs with 0.6% and large SUVs with a smaller increase of 0.1%. Notable risers include the Renault Captur, which increased by 2%, the SEAT Arona by 1%, the Mini Countryman by 2%, and the Mazda CX-5, which increased by 2% on average.

Land Rover products rebounded; up 1.3% or some £290 at three years/60,000 miles in September. This comes after a challenging 12-month period for the brand, during which values, on average, decreased by around 17%, or approximately £6,600.