Despite reports to the contrary, new research has found that electric cars in the UK are written off less often than cars with petrol or diesel engines.
According to Cap HPI, an expert in automotive data, cars with a combustion engine are depreciated more than twice as often as fully electric vehicles.
The study, which analysed data from 2015 to August 2024, found that 0.9 percent of electric cars less than five years old have been depreciated, compared to 1.89 percent of petrol and diesel cars.
Several reports over the past 12 months have suggested that depreciation rates for EVs are exceptionally high due to prohibitive repair costs. However, Cap Hpi says that petrol and diesel cars depreciate more than twice as often as EVs, based on figures from the past decade.
For one-year-old models, there is a similar difference: for electric cars the percentage is 0.2 percent and for combustion engines 0.4 percent.
The report is the latest good news for electric cars, after it was claimed earlier this week that batteries in the latest electric models now last 20 years or more – and generally have a longer lifespan than components in conventional engines.
Jon Clay, identification director at Cap HPI, said: “The research debunks one of the many misconceptions about electric vehicles.
‘The data clearly shows that electric cars depreciate half as quickly as petrol or diesel cars.
‘We work hard to provide both the industry and consumers with an accurate picture of the automotive sector, from valuation data to provenance checks and trend analysis.
‘The auto industry must collectively address the wave of misinformation about electric vehicles circulating online so that consumers and fleet managers can make informed and considered decisions about their next vehicle.’
The analysis found that there are currently 1.25 million EVs less than five years old on UK roads, of which 355,000 are less than 12 months old.
According to the latest official figures from the Society of Motor Manufacturers and Traders on electric vehicle registrations, the number of electric vehicles rose by 10.8 per cent in August compared to the same period last year. They accounted for 22.6 per cent of all new vehicles, the highest market share since December 2022.
Cap Hpi’s data contradicts a number of reports over the past year, which stated that electric cars are depreciated much more often.
A Reuters report last year warned of a rise in the number of electric vehicles being written off due to minor damage to their batteries. Pictured: Damaged electric and hybrid cars at the Doncaster yard of British salvage company Synetiq
A Reuters investigation in March 2023 found that insurance companies increasingly have little or no choice but to permanently remove electric cars from the road after minor crashes, in turn driving up premiums.
The report warns of scratched and slightly damaged batteries “piling up in scrapyards in some countries.” Experts say batteries in expensive Tesla Y SUVs are “zero repairable” because they are a structural part of the car.
Further research last year by British automotive risk intelligence firm Thatcham Research also found that electric cars are more expensive to repair, take longer to repair and are more likely to be written off due to damage to their batteries.
Are Report on the impact of Battery Electric Vehicle (BEV) adoption on the repair and insurance sector A report published last July and funded by Innovate UK, the government’s innovation agency, said road accidents involving electric cars are often “catastrophic for the vehicle”.
This graph shows repairs of electric vehicles and high-voltage batteries as a percentage of total repairs
Thatcham Research demonstrated the impact of a light impact on a Tesla and the damage it can cause to the battery casing, which then needs to be repaired or replaced.
The housing in which the batteries are stored often has a wide structure, making them particularly vulnerable to side impacts.
This is due to a ‘worrying lack of affordable or available repair solutions and diagnostics after an accident’, which often results in electric cars being written off because they are no longer profitable to put back on the road.
This is usually the case if the high-voltage battery pack has been damaged as a result of a collision. Batteries in electric cars represent a substantial percentage of the original value of the vehicle, and if they are damaged in any way, insurers often estimate that the cost to repair or replace them will exceed the total existing value of the car.
The research shows that the cost of replacing batteries for electric vehicles can vary greatly depending on the model. However, it is an extremely expensive process regardless of the type of car.
For a premium electric car, for example, the cost of a new battery is around £29,500, according to Thatcham Research. That’s more than the price of a new petrol Volkswagen T-Roc SUV.
And for ‘budget’ electric models, the average cost of replacing a battery is estimated at £14,200 – more than a Dacia Sandero, Britain’s cheapest car.
Earlier this year, This is Money reported on the problems some owners of Chinese electric cars were experiencing with insuring their vehicles.
This was due to a lack of available parts and expertise to repair them, resulting in vehicles being written off for relatively low damage rates.
Owners of BYD and GWM Ora models said they were faced with extremely high quotes for cover as only a few insurers would insure them due to the difficulty of repairs.
The government recognises the need to tackle misinformation about electric vehicles.
Last year, Richard Bruce, director of transport decarbonisation at the Department for Transport, said: ‘I think there has been a concerted campaign of misinformation over the last 14 months. That campaign has created persistent myths about electric vehicles that people are absorbing and that reflect their desire to buy (electric vehicles).
‘There is an anti-EV story in the newspaper almost every day.
‘Sometimes there are many stories, unfortunately almost all of which are based on misconceptions and untruths.’
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