The cost of second-hand EVs is plunging, but are they good value?

The cost of second-hand electric cars is tumbling much faster than their petrol counterparts, but are they good value?

The cost of second-hand electric cars is tumbling much faster than their petrol counterparts, but that doesn’t necessarily mean they’re better value, with hidden expenses hitting owners after they’ve forked out the up-front price.

The average car loses 14 per cent of its value in its first two years, according to new research that says the average electric car plunges by 42 per cent over the same period.

For example, a three-year-old petrol-powered Hyundai is selling for about $6000 less than last year’s model, while the electric version of the same model is going for $25,000 less than what it cost last year.

But that doesn’t necessarily mean used electrics offer better value to motorists hunting for a bargain, Drive director of content James Ward told 9News.

“You’re buying a car that was already a little bit more expensive than where the equivalent petrol or diesel car was … and of course the main expense of that car is the battery.”

Would-be EV buyers have been advised to seek a battery test through an authorised dealer, but that’s not always a simple task.

“For private sellers and buyers, it’s just not that easy at the moment to try and find someone to perform that battery health test,” Ward said.

While the upfront cost of a used electric car might feel cheap — and there’s no expensive petrol to buy — drivers of the new-generation vehicles often find hidden costs along the way, including insurance.

“[It] is becoming a real touchpoint for electric car buyers with certain insurers not wanting to cover them because of the complexity and cost of repairs,” Ward said.

Part of the problem has been a lack of industry experience relating to electric vehicles.

And while re-training is now a priority — and something that should stabilise prices and help ensure safety — it appears that used EVs are a way off from providing better value than their petrol counterparts.