More and more range, thanks to better batteries: The leaps in innovation in electric cars are particularly large in battery technology and come at short intervals – at the expense of used electric vehicles.
Tanja Herges’ mood sinks towards freezing point when it comes to used electric cars. The used car seller from St. Ingbert in Saarland currently has two such vehicles with purely electric drives in her yard. They will probably stay there for a longer period of time because: “The used electric car market in Germany is dead. Demand is zero,” says Herges.
That’s why she will try to sell the two electric cars abroad. “There is still demand for the cars in the Scandinavian countries and Switzerland. There is simply a lack of trust in Germany,” says Herges.
Barely Change of ownership for used electric cars
According to the Federal Motor Transport Authority, only around 97,000 used electric cars were sold in Germany last year. That’s just 1.6 percent of the entire used car market. What is the reason for this skepticism? One reason: the high prices. In November 23, used electric cars were offered on the mobile.de platform for an average of around 38,000 euros – that’s almost 10,000 euros more than the average price charged for used diesel or gasoline engines.
This is far too expensive for most potential buyers. According to a market analysis by mobile.de, they want to spend around 14,000 euros less on average. Supply and demand hardly match. For combustion engines, the gap between what the cars cost and what dealers charge is significantly smaller at around 8,500 euros. “We assume that prices will have to reduce further this year in order to meet consumer expectations again,” says mobile.de spokesman Nils Möller.
E-Used car prices decrease more on average
The actual sales prices had already come under pressure at the end of 2023. According to the industry association DAT, three-year-old electric cars were sold 4.3 percent cheaper than at the beginning of the year. The price decline was smaller for petrol engines (0.5 percent) and diesels (2.7 percent) of the same age.
Since some manufacturers are now offering ever higher discounts on new electric cars, used car prices will also continue to slide. But this could increase customer reluctance even further, as the resale value in a few years cannot currently be realistically quantified. That’s why, according to mobile.de, four times as many customers choose a leasing model when buying used electric cars compared to combustion engines.
Prices are still high and the residual value is unclear, plus there is still a small variety of models for used cars: there is a big problem facing dealers, because the number of lease returns and used company cars will increase significantly this year. Every car that is in the dealer’s yard puts a strain on the balance sheet – especially electric ones, explains used car dealer Herges. “The residual values that were set at the beginning of the leasing were correct. But they no longer fit the current market. That means it’s clear from the start that you’re making a loss.”
The battery, the great unknown
The biggest uncertainty factor for customers is the drive itself – especially the battery. It is the core element of the car and can account for almost half of the value. Most manufacturers now offer an eight-year guarantee. Nevertheless, the ADAC recommends having the “state of health” of the battery checked before buying a used electric car. “Then you know relatively exactly whether you are buying a pig in a poke or whether the car is still good,” explains ADAC spokesman Micha Gebhardt.
There are currently no uniform testing standards for battery health status. Often the dealers can only read their own brand. But there are initial systems that can check almost all models. By the middle of the year, the motor vehicle umbrella association wants to commit to a uniform rapid test solution for all dealers and workshops. Experts recommend insisting on a battery certificate when buying a used car.
There’s also still a problem with charging
In addition to the price and the battery, there is still a lack of a high-performance charging infrastructure in Germany, according to the motor vehicle umbrella association. This is also a reason why electric cars are having such a difficult time transitioning into the private sector and are still more of a niche product. According to official statistics, since the introduction of the environmental bonus, 80 percent of funding applications have been submitted by companies. Electric company cars were particularly attractive because of the tax advantages.
The federal government actually had very ambitious plans. Chancellor Olaf Scholz announced in December 2021 that there should be 15 million electric cars on German roads by 2030. Without a functioning used market – the experts agree – this goal is utopian.