Used electric vehicle (EV) values are down -9.1% is £17,880 in mid-February year on year due to Tesla price cuts and oversupply.
The EV decline is in sharp contrast, to petrol and diesel cars up 3.3% and 1.4% to £16,266 and £16,326 respectively.
According to Auto Trader the EV decline is “heavily influenced” by the premium end of the market.
Premium EV brands have fallen by -13.1% to an average £43,762 compared to volume brands which have fallen -3.7% to £26,309.
More broadly, the drop in average used EV prices is being driven by the overbalance of supply in the market.
Whilst demand levels for used EVs on Auto Trader remain stable – up circa 40% YoY – the rate of stock growth has rocketed, with current supply up 303% YoY.
So far this month, the volume of used Mercedes-Benz EQA in the market has increased 823% YoY (demand +71.9%), whilst the number of MG MG5s (demand +56.5%) and Vauxhall Mokka-e’s (demand +77.5%) have increased 918%, and 958% respectively.
Walker said: “What’s happening in used EV prices is a natural consequence of a sudden and sharp increase in supply.
“Consumer demand has been dampened slightly by high energy prices in the last few months, but contrary to what some reports may suggest, consumer appetite for electric has far from fallen off a cliff.
“Availability and affordability have been major drivers in the success of some brands in the new EV market, so this increase in stock and the slight reduction in prices may well encourage more used car buyers to make the switch to electric.”