Electric cars are all the rage right now, in particular in the European car market. In the UK, the government has announced that it will ban the sale of petrol and diesel cars by 2040,>>>> and this idea is mirrored across the EU. So, it should come as no surprise that European car manufacturers have grown wise to this trend with a wave of electric cars coming to market over the past decade. In an even bolder statement, Volvo have announced they will cease making conventional petrol and diesel cars beyond 2019.
All of this points to a clear shift in the motor industry, a shift that is particularly pronounced in Europe. In this article, I want to take a look at what such a shift means for car sales.
Selling your car in the Current Market
Although all signs do point to the rise of the electric vehicle, the first thing to make clear is that if you are looking to buy or sell a used car on a site like AutoVolo then it is probably not going to be electric. At this moment in time, although there has been a steady increase in electric vehicle ownership in the UK, electric cars only made up 2.4% of all new registrations this year.
That means that while there is growing interest, electric cars only make up a very small amount of the total vehicles on the road. Furthermore, very few are into the used market yet, as they are still new and in the hands of their first owners.
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The Falling Value of Fossil Fuel Cars
Although the market right now is still dominated by traditional, fuel burning cars this is set to change. Recently, there has been a lot of bad press surrounding these cars and issues like air pollution in cities. This has hit diesels particularly hard, with new diesel registrations falling and the prediction that by 2030 they will have dwindled to make up just 5% of car sales.
Furthermore, some cities are discussing banning diesels from city centres in an attempt to limit air pollution.
These kinds of setbacks mean that resale values of diesels will begin to drop. They will depreciate faster than more eco friendly options, as government incentives and taxation make owning them a less attractive proposition.
This is bad news if you are looking to sell. In fact, if you are thinking of selling a diesel, it would makes sense to do so sooner rather than later. However, it does also mean that there will be some bargains to be found as diesel car prices drop – as long as you aren’t concerned with resale value.
Electric Cars Current Value
At this point in time, electric cars still represent a relatively new technology. Although there is growing interest, for many drivers they are still seen as an unknown quantity – many people aren’t willing to be early adopters. This will change though. Electric vehicles reached the landmark moment of one million units sold, with predictions that four and a half million will have sold by 2020.
In many ways, electric cars are not a threat to the car industry. Rather, they are an opportunity or the car industry to change and adapt.
The players in this new industry will be the ones that can optimise battery production, a completely new challenge to automotive engineers.
What is clear is that while people’s tastes in cars may be changing, there is no let up in the desire to own cars.
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