Used car market booms but electric vehicles depreciate

AutoExec Summary
Electric cars are not holding their value as well as hybrid vehicles, according to a report from the Australian Automotive Dealer Association. Two-year-old electric vehicles are worth 22 per cent less than new, while hybrids are selling for more than their original price. The drop in value mostly occurs in the first year of ownership, with hybrids depreciating by 17 per cent and EVs by 3.5 per cent. This is due to deep discounts in the EV market, leading to decreased resale value. Used hybrid and EV sales have increased by 80 per cent in 2024 due to higher supply. The report also shows a rise in used car listings and sales, with prices decreasing across all vehicle segments. Toyota leads the market with 17 per cent share, while the Ford Ranger is the best-selling used vehicle.

Brands mentioned: Toyota, Ford