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The used car market is approaching price parity between EV and ICE models, with some now cheaper to buy with an electric powertrain than as a diesel, according to Indicata.
The analysis company has considered used price data for five models for its new white paper on 'Reaching used BEV and ICE car price parity'.
It reported that as of last month, a used electric Citroen C4 was worth £2,000 less than a diesel version, while an electric Vauxhall Corsa was worth £750 less than a diesel (all comparisons at two-year-old, 20,000-mile point).
The Peugeot 208 was found to have equal value as an electric or petrol model, while an MG ZS EV was worth £1,250 more than a petrol, and a Hyundai Kona EV worth £4,700 more than a petrol.
Indicata said that used EV prices had peaked in the third quarter of 2022, as demand and computer chip shortages had weakened supply. However, it said prices then fell as manufacturers pushed discounted new and nearly -ew used EVs into the market, at the same time as rising volumes of two and three-year old ex-PCP, leasing and salary sacrifice EVs came up for sale, causing prices to crash by over 30%.
During the first quarter of this year, Indicata said there were signs that used EV prices had stabilised, with prices falling by 1.3% during the period.
Indicata UK head of sales Dean Merritt said: "Price parity is vital for EVs in the used market as consumers are now being offered all the latest fuel types at similar prices, where before used EVs were commanding a 25-30% price premium which put buyers off going electric.
"Price parity is fuelling demand just as the volumes of used BEVs, particularly ex-fleet cars, are increasing which is good news for the entire industry.
"Some brands have already built up a strong EV reputation and drivers are prepared to pay for them than ICE cars, but generally our data shows prices have moved much closer together."
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