Used electric car prices crashing in South Africa

The average prices of used electric vehicles (EVs) have declined significantly in South Africa in recent months.

MyBroadband has been tracking the prices of sub-R500,000 used EVs in South Africa for several weeks and observed that certain models had seen their prices declining by around R20,000 to R30,000 in a month.

For example, one BMW i3 that was selling for around R310,000 on WeBuyCars had seen its price slashed to around R287,000.

When MyBroadband previously compiled a list of the most affordable used EVs in March 2024, the best price on a BMW i3 was R329,950.

That was already a big improvement over the R399,900 of the most affordable BMW i3 in July 2023.

In that same assessment, the most affordable used EV was a 2014 Nissan Leaf priced at R239,900 with just 35,200km on its odometer. That price had since come down to R230,000.

According to AutoTrader CEO George Mienie, the average price of used EVs listed on the car classifieds platform dropped by 6% to R1,124,347 in the year-to-date, compared to the same period last year.

Mienie explained that the number of EV models on offer had increased with comparatively lower-priced new EVs entering the market.

“The primary reason is that cheaper models such as the BYD Dolphin and GWM Ora have entered the market,” Mienie said.

“Additionally, legacy models such as the BMW i3 and even newer models like the Jaguar I-Pace, which have been on the market for more than three years, have significantly depreciated on the used market.”

Mienie also said that used EV stock on AutoTrader had jumped by 45% year-on-year.

In June 2024, EV used car sales increased by 78% over the same month in 2023.

However, this was a lower increase than the year-on-year increases between 2020 and 2023, which saw sales more than double.

With greater supply and slowing demand, dealers and individuals must adjust their pricing to remain competitive.

Mienie revealed that the top three best-selling used electric models in 2024, each with more than 30 units sold thus far in the year, were the BMW iX, the Volvo XC40 Recharge, and the BMW i3.

These three models sold at an average price of R989,387.

The BMW i3 was the only model with average listed prices below R600,000.

In addition, it is one of just two EV models with an average list price below R900,000 on the top 10 best-selling EV list — despite more than five models in total priced below R900,000,

“This tells us that EVs only appeal to in-market shoppers with higher disposable income,” Mienie said.

Mienie said AutoTrader expects more South Africans to buy EVs in 2024 and that their prices will continue to decrease.

However, he said there was still a long road ahead before EV mass adoption.

“As it stands, EVs are still far too expensive for the average South African,” Mienie said. “While EV enquiries and sales continue to grow, this growth in demand is clearly slowing.”

He maintained that the biggest reason EV sales were slowing and that they only remained accessible to upper-income earners was a lack of government incentives and high import taxes.

In addition, Mienie said the jury was still out on the used EV market in South Africa, as many older generation EVs have seen significant depreciation.

EVs proving long-term viability

Mass-produced EVs have not been around as long as petrol and diesel cars, and many consumers are concerned about the long-term viability of their batteries.

That is despite warranties on battery packs typically lasting no less than eight years.

There are now many real-world examples EVs holding much of their original performance years later.

For example, AutoTrader in the UK recently tested a 2016 Tesla Model S with more than 692,000km on its original battery and electric motors.

The battery had lost roughly 22% of its original claimed range, while the motor’s acceleration from 0-100km/h was still within one second of Tesla’s claimed time.

South African Shaun Maidment’s 2016 BMW i3 also had around 85% of its original range left by 2022, having clocked over 300,000km.