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Used EV values could fall by a further 5-10% during the next few months, a member meeting of the Vehicle Remarketing Association (VRA) has heard.
During a presentation on market trends affecting different fuel types, Dean Bowkett of Bowkett Consulting explained that there remained an imbalance between used EV supply and demand, despite recent falls in value.
He said: "The one unbreakable rule of the used car sector is that you can't buck supply and demand, and consumer interest in EVs remains muted against a backdrop of rising supply.
"We could soon be in a situation where for mainstream cars that are available with both petrol and electric drivetrains, the latter is marginally cheaper."
VRA vice chair Rupert Pontin said that the future of used EVs was very much a live debate within the organisation.
He said: "There are those who believe that supply and demand are now balanced and can point to rising values for some models that appear to be underpriced.
"However, others believe that further falls in value will happen, and given the swingeing reductions seen over the last year, there is an extreme degree of caution in the market.
"We are very much aware of the role that the remarketing sector needs to play in terms of the process of electrification and, as an organisation, we, of course, back the move to EVs in environmental terms. However, as pointed out at the meeting, fighting the forces of supply and demand is tremendously difficult, and vehicle values are very much a dynamic outcome of those factors."
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