Pricing stops buyers from choosing EVs over ICE equivalents

Falling EV values stabilise once they reach price parity with their ICE equivalents, the Vehicle Remarketing Association (VRA) heard.

EV pricing, fleet remarketing trends and remarketing logistics were discussed at the VRA’s March meeting. Discussions centered on EVs achieving price parity with their ICE equivalents.

Andy Shields, global business unit director of Indicata, said: “This effect appears to have some relationship to the manufacturer’s reputation for EVs. If it is good, they stabilise slightly above the ICE equivalent, if they have less of a track record, it stabilises slightly below.

“However, the key point seems to be that once prices of EV and ICE versions of a model are roughly the same, buyers start to support the electric version in sufficient numbers that the curve flattens out.

“Of course, whether this is a long term effect remains to be seen but it appears to be holding true at this moment in time.”

While it is clear that EV prices are stabilising, following on from price falls of 2023, some suggest there will be a strong increase due to various factors.

Mark Davis, key account manager of epyx, concluded: “Probably the most interesting development of the last year or so has been something that we are calling multi-channel remarketing, where major fleets are increasingly looking to sell the same vehicle simultaneously through a number of channels, both trade and retail, with prices adjusted accordingly.

“It offers the best chance of maximising values following recent market readjustments.”