A new survey by HonkHonk indicates that owners looking to sell their electric vehicles (EVs) might encounter lukewarm interest from dealerships, as more than one-third of dealers are now “much less interested” in acquiring EVs compared to a year ago.
The shocking depreciation experienced by certain EV models last year has left dealers hesitant, with one in eight expressing being “a bit less interested.”
Examining the Impact of EV Price Declines
In 2023, This is Money extensively reported on the notable decline in EV prices.
The survey lists the 30 electric cars that suffered the most significant value drops during the calendar year, with the Seat Mii Electric experiencing a deflation of 46 percent.
Dealer Attitudes Toward EV Stocking
HonkHonk surveyed 66 independent dealers across the UK, revealing that more than half reported a decline in their intention to purchase stock of EVs.
A substantial 38.5 percent of dealers expressed being “much less interested,” while another 12.3 percent were “a bit less interested” in acquiring fresh EV stock.
In contrast, only 7.7 percent indicated increased interest in taking on electric cars.
Potential Impact on EV Values
Dealers’ reluctance to stock up on EVs could potentially drive values even lower, leaving owners with the choice of accepting lower prices or holding onto their EVs.
Sebastien Duval, CEO of HonkHonk, attributes this hesitation to the significant depreciation witnessed last year, causing dealers to fear potential losses if EVs don’t sell quickly.
EV Market Dynamics and Consumer Demand
Market analysts suggest that the EV market is facing challenges arising from increased supply in the used market and rapid improvements in new models, making used EVs less attractive.
Additionally, inadequate charging infrastructure and lower mileage ranges of older EV models contribute to their declining appeal compared to traditional petrol and diesel cars.
Auto Trader’s Perspective on EV Market Health
Contrary to dealer hesitations, Auto Trader reports a robust demand for second-hand EVs, with an 81.5 percent year-on-year surge in appetite for used electric cars in February.
However, it acknowledges a significant fall in average used EV values over the past 12 months.
Balancing Dealer Risk Aversion and Consumer Demand
Dealers’ increased risk aversion, stemming from challenging market conditions in the previous year, has made them favor cars they can quickly turn around for a sale, such as small or medium petrol cars.
While consumer demand for used EVs remains strong, the disparity in dealer enthusiasm suggests potential challenges for those looking to sell their older EVs.