EV: the used car market is collapsing

Are you currently looking to sell your EV? Then you might be shocked at the prices being asked on the used car market. After all, sellers sometimes only get rid of their used electric car at dumping prices.

Demand on the used car market is shrinking

In times of disrupted supply chains, car sellers could do great business on the used car market. This was simply due to the fact that for many people it was worth a huge premium to be able to get a car immediately. When buying a new car, waiting times of up to a year or even more are no longer uncommon. But those days are over. Prices in the used car trade have now returned to normal. This applies at least to petrol and diesel vehicles. For EV, on the other hand, sales prices have recently reached a sad low.

The reasons are obvious. A large supply of cars for sale is offset by too little demand. If you want to sell an electric car, you have to significantly lower your expectations, as the management consultancy Berylls has now discovered in a study. Contrary to the expectations of some experts, the market has taken a negative turn. Many market experts actually assumed that the used car market would continue to gain in importance in 2024 and that good business could be done. However, the sudden removal of the mobility bonus appears to have had an impact here too.

Technical progress in EV discourages purchases

Another reason that should not be overlooked is probably the rapid pace of technical development in this market segment. New records are being set year after year, particularly in important disciplines such as range and energy efficiency. And you don’t always have to dig deep into your pockets when it comes to a new car. Instead, manufacturers from the Far East such as BYD focus on a lot of technology at a great price-performance ratio. As a result, willing buyers of a model are naturally more likely to opt for a new car than a used electric car.

• More on the topic: Penalty duty: Will an e-car from China soon no longer be a bargain?

Not just a problem in Germany

However, the lack of attractiveness due to the abolition of the mobility bonus cannot be entirely blamed for this problem. After all, falling prices are not only being observed in Germany, but also in France, as the corresponding report in Wirtschaftswoche shows. In the neighbouring country, however, the purchase of fully electric cars is still subsidized by the state. Incidentally, Berylls does not expect the market situation to improve. Instead, the only thing that can be done in this area is to try and minimize losses. The management consultants also have a solution for this. For example, an electric car could be sold back to the manufacturer. The manufacturer could then give the vehicle a “second life” as part of leasing contracts or car subscriptions.