The new car landscape is changing rapidly.
2019 has already seen an upsurge in new alternatively fuelled vehicles from mainstream and premium manufacturers and new registrations of electric cars soared 150 per cent in July.
The move towards hybrid and all-electric cars is set to continue and recent new examples such as the Audi e-tron, Tesla Model 3 and Kia e-Niro will be joined later this year by new hybrids from Volvo and all electric models from the likes of Mercedes, Volkswagen, Honda and Peugeot.
A recent poll found that a third of car owners change their vehicle every four years or less, making depreciation from new a major concern for buyers.
Research by What Car? found that alternatively fuelled cars such as hybrids and battery electric cars (EVs) hold their value better than traditionally powered alternatives and a new study has now looked at just how well some of the country’s most popular models hold their value.
The research by InsuretheGap.com compared depreciation rates for some of the best-selling EVs and plug-in hybrids in the UK, but did not consider serial or “self-charging” hybrids.
The Volvo XC90 T8 proved to be hybrid/EV which held into its value best over the course of three years. According to the research, the large SUV will lose just 31 per cent of its value.
Another premium manufacturer was in second place, with the Mercedes-Benz C350e hybrid estimated to lose 40 per cent of its original cost after three years of ownership.
The Tesla Model S was the best performing pure-electric car on the list. It was third overall, with a depreciation rate of 43 per cent.
Britain’s best-selling plug-in hybrid, the Mitsubishi Outlander PHEV, lost 45 per cent of its value, putting it fourth on the list just ahead of the closely related Audi A3 e-tron and VW Golf GTE, which lost 47 and 48 per cent, respectively.
According to findings from WhatCar? The average internal combustion engined car loses around 58 per cent of its value after three years and 30,000 miles, putting almost all of the hybrids and EVs on InsuretheGap’s list ahead of the field.
Only the Renault Zoe lost more than this, with a depreciation of 61 per cent making it the worst-performing new car but a potential second-hand bargain for buyers looking for a small EV.
Make/Model 2016 Price (New) 2019 Valuation Depreciation % 1 Volvo XC90 T8 (Hybrid) £64,150 £44,250 31% 2 Mercedes-Benz C350e (Hybrid) £42,285 £25,500 40% 3 Tesla Model S (Electric) £66,880 £38,250 43% 4 Mitsubishi Outlander PHEV (Hybrid) £34,749 £19,000 45% 5 Audi A3 e-tron (Hybrid) £35,875 £18,900 47% 6 VW Golf GTE (hybrid) £31,625 £16,400 48% 7 BMW i3 (i3 REX) (Electric) £31,060 £15,600 50% 8 Nissan Leaf (Electric) £27,835 £13,100 53% 9 BMW 330e (Hybrid) £33,880 £15,900 53% 10 Renault Zoe (Electric) £19,988 £7,830 61%
Data: InsuretheGap, based on 3 years, 30,000 miles
Ben Wooltorton, chief operating officer at InsuretheGap, commented: “Electric cars are usually more expensive than their petrol equivalent, but their running costs are significantly cheaper.
“For example, to fully charge the VW Golf GTE car’s 8.7kWh battery, which has a driving distance of 20 miles, costs around £1.04 at home (this is 5.2p per mile). Whereas, the petrol or diesel version would cost around £2.40 (or 12p per mile) to drive 20 miles.
“Electric cars are also usually exempt from vehicle tax. However, as with all investments it pays to know how well they will keep their value over time and electric cars are no different.”