While second-hand fleets were still very poor in electric models two or three years ago, recent figures show a growing supply, falling prices and attractive models. However, French demand remains relatively weak, hampered by questions about the reliability and cost of batteries, as well as by less competitive financing conditions. However, this is perhaps the best time to give in to temptation, and we’ll explain why.
Buying a new car, whether thermal or electric, represents a significant budget. Although prices are now buried in a myriad of financing offers that we regularly analyze, monthly payments have exploded in recent months, as have contributions.
And this is not necessarily going to get better, we explain why in our dedicated file. And in 2025, with the planned reduction in the ecological bonus and the end of the conversion bonus, if manufacturers do not lower their prices, the market could still suffer next year.
However, with technology which is becoming more and more mature, an offer which is becoming plethoric and a charging network which, in France, has become considerably more dense in recent years, there is no reason why the electric car should not cross the border. not a cape, which represents between 15 and 20% of new car registrations in the country on average in 2024.
The problem is the price, a price that is still largely under control, and the abandonment of subsidies could obviously put a stop to the electric car. We have seen this in Germany, where since the end of aid at the start of the year, the market share of electric cars is regularly below 15%, or even close to 10% depending on the month.
The new market now, it’s the second-hand market tomorrow. The more new models sold, the more opportunities there will be. It’s a fairly simple principle, and with the advent of the electric car 3-4 years ago, we noticed that the second-hand electric market is growing. It is growing, of course, but stocks are overflowing. But why that when the second-hand market largely outperforms the new market in France?
The market has evolved, but not necessarily as expected
In 2024, electric vehicles represented on average 17% of new car registrations in France, a significant increase compared to previous years. However, their share in the second-hand market remains marginal, at only 2.4% of registrationsfar behind diesel (47%) and gasoline (42%) vehicles according to NGC Data.
This difference is partly explained by the relative youth of the market. The first major waves of purchases, supported by state aid and rental schemes (LOA or LLD), date back to 2020. These vehicles are only now arriving on the second-hand market, thus creating an abundant supply. An abundant supply, certainly, but expensive, hence the stocks which are filling up and are not emptying much at the moment.
Indeed, to offer new electric cars at advantageous rents, manufacturers anticipated very high residual values which, by mechanism, brought down rents. We had MG4s at 99 euros per month, while the basic rent now stands at 249 euros per month, over the same period and with generally the same conditions.
With high residual values, when the brands recover the cars, they resell them at logically high prices so as not to lose money, higher than the market in this case. Except that this bad calculation of residual values is paying for itself in cash today: stocks are overflowing and used electric cars are still too expensive.
Stocks are overflowing: a price reduction is obligatory
Between 2022 and 2024, the number of electric car ads on leboncoin has doubled. In 2024, this market represents 3.59% of used vehicle ads on the platformcompared to 3.47% the previous year. With 40,000 listings listed, supply far exceeds demand.
Direct consequence: resale times are getting longergoing from 130 days at the start of the year to 160 days in September, according to data from L’argus. Prices also follow a downward curve. The average price of advertisements fell from 30,432 euros in 2023 to 25,961 euros in 2024, a drop of almost 15%. The average sales price fell to 21,744 euros in September 2024.
Recent models are becoming more affordable: a two-year-old Fiat 500e sells for between 15,000 and 20,000 euros depending on the finishes and mileage, while a Peugeot e-208 around the same price for roughly the same age, even if, at this price, it will almost exclusively be the mid-range “Allure” version.
This drop in prices is also fueled by professionals who, at the end of the year, agree to significant discounts to reduce their stocks.
The Bon Observatoire data highlights the models where the supply is densest. Here are the top models most represented on leboncoin:
This ranking should evolve in the coming months, with the return of financing for the Tesla Model Y at its launch, the American SUV having quickly risen to the top of the top sellers of electric cars. Models like the MG4 or the Dacia Spring will soon arrive in numbers.
Buyers are still cautious
Despite more “attractive” prices than before, used cars are still struggling to attract buyers. On leboncoin, ads for electric vehicles receive on average 1.5 views, three times less than a diesel vehicle (4.2 views) and half as many as a gasoline vehicle (3 views). Even hybrids are generating more interest with 2.2 views per ad.
The most attractive models in 2024 (from January to October) remain dominated by Tesla and the electric pioneers, namely the Tesla Model 3 in first position, followed in order by the Renault Zoé, the Tesla Model Y , the Tesla Model S and the Peugeot 208.
Despite the drop in prices, the cost of used electric cars is still considered too close to that of new models, especially for rented vehicles. In fact, builders take advantage of purchasing aid, discounts and high residual values to offer attractive rents on new properties, which makes second-hand offers less competitive, as stated above.
However, manufacturers will have no other choice than to agree to lower prices, or, as we recently saw at Volkswagen with the first ID.3s, to start a second round of financing.
But what can buyers be afraid of?
Fear of battery degradation or failure remains a major barrier for used buyers. Yet, electric vehicle batteries are guaranteed for 8 years or 160,000 kmand studies show an average degradation of only 2% per year.
Contrary to popular belief, a damaged battery does not necessarily require a total replacement. Many manufacturers offer targeted repairs, only changing defective cells. In other words, a degraded battery will undoubtedly pose fewer problems than a 1.2 liter three-cylinder PureTech from Stellantis in the world of thermal engines!
Generally speaking, many second-hand professionals now offer a battery health check (SOH). This transparency is now reinforced by European regulations of August 2024, which impose this communication on certain vehicles.
The rapid development of electronic and battery technologies also works against second-hand electric vehicles. Older models may seem obsolete in the face of recent innovations, particularly in terms of autonomy or charging speed. Indeed, when the thermal engine seems to have reached its peak, the electric engine continues to advance at high speed.
Proof of this is, autonomy is becoming less and less of a concerneclipsed in a few years by sometimes impressive mileage for small models, an awareness among customers that doing 700 km with a single tank is not useful every day, but also and above all the densification of the charging network.
What to remember?
Overall, the signals are clear: used electric cars are becoming more financially accessibleoffering an interesting alternative to new vehicles, but they are generally still too expensive. However, complete democratization requires the removal of psychological and practical obstacles.
Strengthening transparency on the condition of batteries through systematic health checks, communicating more about the durability and repair possibilities of batteries or even improving the competitiveness of rental offers on used vehicles are, in our eyes, the main areas of work to gradually arrive at a more dynamic used electric car market.
