A third of dealers now believe electric cars look much better value falling dramatic falls in values throughout 2023.
Used EV values have fallen 58% over a 21-month period and now look a more attractive option for buyers.
The October Startline Used Car Tracker showed that 32% think used electric cars now look like much better value, 27% that buyer interest is improving and 24% that EV values have stabilised for the long term.
However, 27% say that current price stability could be temporary and 21% that there are still too many large, luxury electric SUVs in the market that don’t meet the needs of ordinary buyers.
Paul Burgess, CEO at Startline Motor Finance, said: “After the huge volatility of recent years, used electric car prices and values appear to have stabilised, and our research shows that a sizeable minority of dealers think we have reached a point of maturity in the market for these vehicles, which is an important development.
“However, there remains some wariness around electric cars, with some dealers thinking that there will be further disruption in prices and values. Given the kind of price falls that occurred when many were holding stock, this caution is very much understandable.
“Also, it’s interesting that around one in five think the kind of electric car stock that is available is not yet ideal for the mass market. Most of the supply into the used market is ex-company cars, so this is perhaps inevitable for a while yet.”
Startline has this month started to offer its full range of motor finance hire purchase and personal contract purchase plans for electric cars with rates and conditions identical to petrol and diesel models.
Burgess said: “Up until this point, our view has been the same as many others in the motor finance sector and some of the dealers in this research, that it is just too risky to get involved. However, the data has recently started to tell a different story and we conclude that the market is now sufficiently stable to get involved.
“Largely, we believe that the kind of dramatic shifts in values and prices that have affected electric cars are probably over, and now is the right time to start to offer funding. Our move is very much a vote of confidence in the viability of the electric car market,” he said.