Unease over used electric cars

Previously forecast residuals for Nissan's all-electric Leaf have been revised downwards, indicating it will suffer from heavier depreciation than originally expected.

Initially predicted to retain 46% of its original value after three years and 30,000 miles, the Leaf is now anticipated to retain 35% - an 11% drop.

This means that the Nissan, which costs £30,925 excluding any grants, could lose as much as £20,101 in three years. Originally it would have lost around £16,669.

This high rate of depreciation isn't unique to the Leaf. The all-electric Mitsubishi i-MiEV and Citroen C-Zero are also expected to be worth around 34% of their original value after three years, resulting in a loss of approximately £20,000 in depreciation.

As a result, the current crop of electric cars will depreciate more heavily than eco-diesels such as the Volkswagen Golf Bluemotion and Skoda Fabia Greenline, which retain 37-41% of their value and are cheaper to buy, making the effect of depreciation less significant.

These drops are as a result of a lack of buyer confidence in the technology, concerns over range and confusion over where and how owners can charge the cars. Many potential buyers are realising that electric cars can more expensive to buy and run than a conventional diesel - which is faster and doesn't have any range limitations.

Customers are also realising that electric cars aren't as green as they claim to be. While they don't produce any emissions directly, they are charged off the national grid. This means the majority of their power is generated by coal and gas power stations. Consequently, in some instances, an electric car can indirectly have greater emissions than a diesel car due to how the power is generated.

Further affecting used values is the increased availability, both new and used, of hybrids like the Toyota Prius and Lexus CT200h. These offer some of the benefits of electric cars without the need for recharging, attracting customers who are suffering from range anxiety.

 Even though Nissan guarantees the Leaf's battery for eight years, or 100,000 miles, the modern generation of electric cars has no track record of reliability or expense, so buyers are uncertain as to what costs or issues they could be facing in the future.

As with the recently announced electric vans values, however, used electric cars could make an excellent buy for those who cover short distances - if owners are willing to accept that a failed battery may cost more to replace than the total value of the car.

Parkers Top Tip:

If you're thinking to switching to an electric, or high-efficiency car, use our Cost of Motoring tool to compare running costs, of both new and used cars, to see how much you could save.