Barry Judge, CEO at Cazoo explained: “It’s great news for motorists that the Government has introduced a new electric car grant – this also has the potential to stimulate the used electric vehicle market.
“Today’s new cars become the used cars of tomorrow. A reduction in new prices could flow through to a reduction in used car prices, as they need to appear more competitive against a newer alternative.
“More importantly, this move drives curiosity in EVs. When people realise that there are used as well as new options, they may well be attracted to some very attractive prices for used EVs.”
Two in five used electric cars are now sold at under £20,000, and prices could come down even more as a result of the policy.
However, second-hand marketplaces now have some electric cars priced at under £5,000 for those looking to take their first steps into EVs. But, some of the best electric cars are now the same price or even cheaper than their petrol and diesel equivalents.
Experts stressed that the number of models on the market was having a direct impact on pricing with more stock usually equalling lower fees.
Barry added: “Our most recent data shows that the average price of an EV is now below those of hybrids – EVs being £24,185 on average and hybrids £24,902. This price is also a -25% reduction in price since the peak in October 2023, and a -8% drop from June 2024.
“At the same time, alternative fuel cars (including hybrids and EVs) now make up a record 18% of stock on our platform. Simply, there is more choice and more attractive pricing for used cars.”