Used EV car prices drop in South Africa

From the newsletter

The price of used electric vehicles in South Africa has dropped significantly over the past 12 months, according to a published report. The report shows that while only six models of used EVs were selling under $54,000 in March 2024, 12 models are now selling below this price point in February 2025.  

• Demand for used vehicles across all categories in South Africa outpaces demand for new cars by two to one. As prices of used EVs decline, it will not be long before their sales also outperform new EVs.

• The BMW i3 eDrive is the cheapest used EV in the country with a price of $15,000. This price still beats the cheapest new EV, the BYD Dolphin Mini, which will launch in South Africa this year with a price tag of $19,000.

More details

• South Africa’s used EV market is steadily expanding, as more EVs enter the market and early adopters upgrade to newer models.  

• The market is however currently limited by the relatively small number of EVs that have been sold in South Africa so far. This means that the selection of used EVs is still quite limited. There are less than 5,000 passenger electric cars in the country.

• The used EV market is currently dominated by premium brands such as BMW, Audi, Volvo, and Jaguar. This is because these brands were among the first to introduce EVs to the South African market.

• The BMW iX is a particularly popular model in the used EV market, indicating a strong preference for SUVs among South African consumers. Volvo’s XC40, EX30, and C40 models are also popular choices in the used EVs market.

• Currently, EVs are losing value much more quickly than ICEs due to concerns over battery longevity. A recently published study found that EVs had worse resale values than petrol or hybrid cars, losing roughly 49% of their value in five years compared to an average of 38% across all propulsion types.

• One of the primary concerns consumers have about EVs is how their large and expensive batteries will hold up in the long run. Major automakers are now offering generous warranties guaranteeing a free replacement or repair if the battery drops below 80% of its original capacity within eight years or 200,000 km.

• A key challenge for used EVs is the lack of sufficient charging stations across South Africa. While this is the same for new EVs, used cars are at a bigger disadvantage because of the reduced performance of their batteries, which curtails their range. 

Our take

• Newer electric battery models are lasting longer, with studies showing longevity of between 10 to 15 years. This will likely push up the resale value of used EVs, as users will be holding on to their vehicles for longer periods of time.

• The pace of adoption of used EVs will depend on South Africa’s economic performance. People tend to pivot towards used vehicles when the economy bites because they are cheaper but go for new cars in boom periods.  

• The launch of cheaper new EVs such as the BYD Dolphin Mini could slow down the used EV market. The rate at which global EV prices are dropping means that we could soon see new models that are cheaper than older used EVs.