Used electric cars are now selling for around 11% less than comparable diesel vehicles, according to a new report from DoneDeal Cars.
The finding is based on an analysis of used cars under five years old listed for sale on the dealer-based online marketplace, reports RTE.
The study compared the prices of electric vehicles (EVs) with cars using other fuel types on a like-for-like basis, taking factors such as vehicle age, mileage and model into account.
It also found that the median asking price for a typical three-year-old electric car is now €28,825, compared with €35,893 for a diesel vehicle of the same age, reports RTE.
According to the DoneDeal Cars Price Index, petrol cars remain the most affordable option in terms of upfront cost, with a typical three-year-old model priced at roughly €22,900.
The report said the difference in price between petrol and electric vehicles has “narrowed significantly” in recent years, reports RTE.
The analysis concluded that the sharp drop previously seen in used EV prices “appears to have stabilised” after what it described as “a turbulent period triggered by falling new-car prices, reduced purchase grants and increased supply of electric vehicles entering the second-hand market”.
Economist and DoneDeal Cars Price Index analyst Dr Tom Gillespie said the figures “suggests the market has found a more sustainable level”, reports RTE.
“EV prices are stabilising, supply is improving, and price movements are becoming more predictable again after several volatile years,” he said.
Head of Automotive Content and Communications at DoneDeal, Paddy Comyn, said prices “surged during the supply shortages of the pandemic years, then corrected sharply as supply improved and manufacturers cut new-car prices”, reports RTE.
“What we’re seeing now is the market settling into a more normal pattern.”
He added that electric vehicles are “no longer carrying a premium over diesel”, reports RTE.
Speaking on RTÉ’s Morning Ireland, Mr Comyn outlined estimated annual driving costs for an average motorist covering about 17,000 kilometres per year, highlighting concerns about rising oil prices amid the ongoing US-Iran war.
“All things being equal, you’re going to pay about €780 per year to charge that car. And if you’re driving a petrol car, that’s going to be about €2,200 and a diesel about €2,000,” he said, reports RTE.
Addressing ongoing concerns about EV battery life, the DoneDeal representative noted that many car manufacturers are now offering longer warranties on batteries, with some covering up to 160,000 kilometres or around seven to eight years.
The report also identified “ongoing pressures” at the lower end of the used car market, reports RTE.
It found that the price of vehicles costing under €6,000 increased by 7.6% year-on-year, which it said “reflecting continued shortages of cheaper cars”.
The analysis also showed that Ireland’s used car supply chain has changed significantly since Brexit.
Imports from the UK have “fallen sharply” since 2019, while Japan now accounts for about half of all used car imports into Ireland, reports RTE.
DoneDeal said many of the vehicles imported from Japan are European brands that were originally sold in the Japanese market before later being exported again, reports RTE.
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