Nearly-New Electric Vehicles Lose Over Half Value Amid Market Discounts

Electric vehicles (EVs) less than two years old are now retaining only about 47% of their original value, a significant drop from 83% in 2022, driven largely by aggressive manufacturer discounts aimed at meeting government net zero targets. This steep depreciation contrasts sharply with diesel vehicles of similar age, which retain around 70% of their value. The surge in new EV registrations, fueled by discounts estimated at around £4 billion in 2024, has flooded the market with cheaper new models, reducing demand for nearly-new EVs. Experts from Cox Automotive note that the ability to buy new EVs at prices comparable to nearly-new models disincentivizes buyers from purchasing used ones, harming the used EV market. However, EVs aged three to five years have only seen a modest 15% drop in value, as they appeal to a different buyer group and are less affected by new car discounts. While falling EV prices benefit consumers, the rapid depreciation is causing concern within the automotive industry, particularly for fleet operators and used car profitability.