As part of Used EV Week, James Court, Public Policy Director, Octopus Electric Vehicles explores the value and benefits that are offered by used electric vehicles, and how they aren't just a 'typical' second-hand car.
The narrative around electric vehicles (EVs) has been stuck for years. It goes like this: great for the planet, sure, but too expensive for the average driver.
Despite significant growth - the number of electric cars on UK roads now exceeds 1.7 million and makes up more than 20% of new registrations - some question if growth is sustainable. Traditional manufacturers are struggling to hit new sales mandates, and sticky myths around range and public charging persist.
In opposition to those who doubt the future of EVs is an often overlooked catalyst for mass adoption. The used EV.
The great price equaliser
The biggest hurdle to going electric has always been the initial purchase price. Used EVs flip the script.
- The Influx: A surge of high-quality EVs are now coming off three-to-four-year fleet and salary sacrifice leases. This glut of supply is hitting the second-hand market, making EVs more affordable. Used EV sales grew by almost a third in just 12 months, to over 136,000 in the first half of this year.
- Price Parity Achieved: Data shows that a three-to-four-year-old used EV is now, on average, cheaper than its equivalent petrol or diesel car. At the three-year mark, some used EVs are valued up to 8.5% lower than their ICE counterparts, a gap that widens further after four years to 14%.
- Lower Running Costs: Lower upfront cost is the final piece of the affordability puzzle. When combined with the running costs (e.g. charging, insuring, servicing, taxing) the case for EVs versus petrol is undeniable. Put up against a petrol equivalent, a used EV will save a driver on average £3,440 over five years across all buying and leasing scenarios. Not just price parity, but thousands of pounds saved.
An upgrade on "second-hand"
The approved used EV is fundamentally a better product than the legacy "second-hand" car. The perception that a used EV is an old, slow liability is a myth that must be actively dismantled.
- Mechanical Simplicity is Reliability: Electric motors are mechanically simpler than a complex internal combustion engine (ICE). They have fewer moving parts, which inherently translates to less complex maintenance and a lower risk of expensive breakdowns. Maintenance costs for an EV can be half that of an equivalent petrol car over a typical ownership period.
- The Wireless Upgrade: Unlike a traditional car, the technology in a three-year-old EV isn't three years out of date. Most modern EVs benefit from over-the-air software updates that continuously improve performance, efficiency, and features, keeping an older car feeling modern and safe.
- Battery Assurance: Concerns over battery life are largely inflated and outdated. Most EV manufacturers have provided 8-year warranties on their models from the start. And since 2023 it has been a legal mandate, and automatically passed on to the used-car buyer.
The car is just the beginning: A systemic reset
This dramatic shift is more than just a car sale; it's a systemic reset. The affordable used EV is the gateway to a less costly, more resilient energy future for millions of households.
By making the jump accessible, we are enabling mass participation in a future where the car is no longer just a consumer of fuel, but an integral part of a smarter energy system. The vast majority of people can now afford to use their EV to draw power when it's cleanest and cheapest, fundamentally linking transport and domestic energy consumption for a more robust, greener grid.
Octopus EV regularly reports on the growth of the EV market in its blog - EV Hub. https://octopusev.com/ev-hub
