EV cars: used car prices also expected to fall in Germany

The market for electric cars has one more problem, especially in Germany, the Welt indicates. According to experts, prices for used electric cars will continue to fall. “We are seeing the biggest loss in value of all powertrain types for used electric cars,” Stefan Schneck, head of German sales at AutoScout24, told WELT AM SONNTAG.

“We assume that the pressure on electric car prices will continue to increase and that residual values will continue to fall significantly in 2024.” Last year, the average price of used electric cars on AutoScout24 fell by 28 percent. Prices continued to decline in January and February 2024.

Andreas Geilenbrügge, head of residual value at car expert Schwacke, predicts “two difficult years on the used car market for electric cars” in 2024 and 2025. Many vehicles arrive on the market, but potential buyers lack the motivation to switch to electric mobility,” Geilenbrügge said.

Then there is the issue of batteries in used EV cars: we know that accumulators are the absolute most expensive component of an electric car and that their efficiency comes to deteriorate over time. Buyers of used cars, who are the vast majority compared to those of new cars, fear this factor greatly. According to British research, 25 percent of used car buyers give up buying precisely because they are concerned about the actual condition of this component or because of the high costs of maintenance in general. Of the drivers who said they wouldn’t buy a used EV, 62% cited concerns around battery lifespan, making the fear of poor battery health the single largest barrier preventing the second-hand market from taking off, a concern echoed by industry experts.

This corresponds to the results of a representative study by market observer DAT. As a result, only 13 percent of used car buyers can imagine switching to an electric car.

“Customers are cautious, especially when it comes to used cars. They cannot evaluate technology and will only benefit if prices fall further,” said automotive expert Ferdinand Dudenhöffer.

“The whole market is very unstable. Because, in my opinion, the policy in the EU is moving away from electric cars again.”