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Why exactly has the once-popular electric vehicle market recently seen a plummet in prices?
We’ll be taking a deeper look into the downfall of the eco-friendly travel alternative and why prices are continuing to drop. Is the EV market headed for a downward spiral or is this just teething troubles?
Trouble ahead for the used EV market?
The electric car market has seen a significant drop in the value of used EVs, making car dealerships reluctant to purchase due to the fear of their future valuation.
There appears to be a widespread consumer pushback in the market as carmakers continue to release new electric cars to meet the government’s deadline of 2030, by which the production of new petrol and diesel cars will cease.
Research shows that electric car values dropped by 2.1% in January compared to December last year, against a 0.2% increase in used cars during this period.
However, there are still many car brands that have a selection of options available. For example, there’s a range of EV and combustion engine Vauxhall cars for sale, so you have the choice of either.
Additionally, the EV market has been reliant on tax credits and government subsidies in order to meet net-zero emissions, but the removal of these has caused a negative impact on consumer sentiment.
Why are the prices dropping?
Many carmakers have agreed to make their ranges entirely emission-free, eventually turning the EV market into the “new normal” and therefore, causing these prices to drop.
Electric cars are becoming much cheaper to make and are expected to meet the levels of petrol and diesel cars in the next few years. This is due to the advancements in batteries, allowing carmakers to mass produce these vehicles.
The question of “Are there enough EV charge points in the UK?” also comes to play. Charging an EV on long-distance journeys can often be challenging, with the government still yet to invest in the relevant infrastructure in order to provide enough charging points.
Local authorities will also need to offer support by rolling out charging points in residential areas to enable equal opportunities for people to own an EV, despite not having access to their own driveway.
It was also recognised that the EV market began to falter due to the current cost of living crisis, causing a decline in demand for the vehicle. The lack of choice and affordability in the market has caused the EV industry to halt, with rising electrical costs also playing a huge part.
Dealerships that currently have used EVs available have had to slash prices to sell their remaining stock. Industry figures show that the value of a used Tesla dropped by a fifth in the last 12 months.
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