Electric Car Resale Values Stabilize, But Infrastructure Concerns Remain

The electric vehicle (EV) market in Ireland is showing signs of stabilization, with resale values for used EVs now approximately 11% below comparable diesel vehicles, according to recent data from DoneDeal Cars. This marks a shift from previous volatility, but challenges related to charging infrastructure continue to pose obstacles to wider EV adoption.

Stabilizing Resale Values

For some time, the depreciation of electric vehicles was a significant concern for buyers. This was largely attributed to automakers frequently reducing the prices of new EVs, impacting the resale value of older models. Motoring journalist Geraldine Herbert noted that this instability stemmed from the practice of carmakers lowering prices on new vehicles shortly after purchase, creating a discrepancy between initial investment and future resale potential. However, with new EV prices now stabilizing, the second-hand market is following suit, offering more predictable values for consumers.

“Carmakers have stopped reducing the price of EVs,” Herbert stated in a recent interview. “The price of new EVs have stabilised and we’re now seeing that same stabilising happening in the second-hand market, which is good news for everyone.”

Shifting Barriers to EV Adoption

While price and availability were initial hurdles for EV adoption, the focus is now shifting towards the reliability and accessibility of charging infrastructure. Although significant improvements have been made, the charging network remains “patchy,” raising concerns about convenience and range anxiety among drivers.

“The barriers have kind of shifted from price and availability to now confidence in the infrastructure,” Herbert explained. “The infrastructure is a very sizeable issue – it’s improved drastically… but the problem is it’s quite patchy.”

2030 Targets Unlikely to Be Met

Ireland has a government target of having 30% of the country’s private car fleet switched to electric by 2030. However, current progress suggests this goal is unrealistic. With approximately 200,000 electric cars (including battery electric, electric and plug-in hybrid vehicles) currently on the road, a shortfall of around 645,000 vehicles remains.

“Effectively that means every new car sold between now and the end of the decade would have to be electric to meet that – that’s not going to happen,” Herbert said. “That target was always unrealistic.”

Consumer Sentiment Remains Positive

Despite concerns about charging infrastructure, a recent survey by DoneDeal Cars found that 90% of EV drivers report cheaper running costs since switching to electric. 70% of respondents indicated they would choose electric again for their next vehicle.

You can find electric cars for sale on DoneDeal.