Used electric car depreciation explained: why prices fell and what’s happening now

Electric cars lost value faster than petrol and diesel cars for most of 2023 and 2024, which made used EVs some of the best-value cars on sale. In 2026 that has turned around. Used EV prices are rising again, especially for three to five-year-old cars, as higher fuel prices push more buyers towards electric.

This guide explains why EV values fell so far, what the latest data shows, and what depreciation means for you as a buyer or seller.

Last updated 27 October 2026. Market data comes from Auto Trader, the SMMT and Autorola (see the sources at the end).

Key takeaways

• Used EV prices fell sharply in 2023 and 2024 as ex-lease cars flooded the market and new EV prices were cut.
• In 2026, used EVs were the only fuel type recording annual price growth in Auto Trader’s September data.
• Like-for-like used EV prices rose 3.8% year on year in August 2026, and 9.4% for three to five-year-old cars.
• Used petrol and electric cars reached price parity for the first time in early 2026, according to Autorola.
• Nearly new EVs still lose value quickly, partly because of discounts and grants on new cars.
• Battery health reports are starting to make a measurable difference to a used EV’s value.

In this guide

• Why did used EV prices fall so much?
• What is happening to used EV prices now?
• Will used EV prices keep rising?
• What depreciation means if you are buying
• What depreciation means if you are selling
• Frequently asked questions
• Sources and further reading

Why did used EV prices fall so much?

Several things hit at once in 2023 and 2024:

• A wave of ex-lease and company cars. Many early EVs were leased or bought as company cars because of very low benefit-in-kind tax. When those contracts ended, large numbers arrived on the used market together.
• Cheaper new EVs. Price cuts and heavy discounting on new electric cars, as manufacturers worked to meet sales targets under the government’s zero emission vehicle mandate, pulled down the value of nearly new used cars.
• Higher interest rates. Finance became more expensive, which squeezed what buyers could afford.
• The end of the road tax exemption. EVs were confirmed to start paying car tax from April 2025, removing one of their running-cost advantages.
• Buyer nervousness. Worries about battery life, range and charging held back demand.

The result was that many EVs lost far more of their value in their first few years than an equivalent petrol car. That was bad news for first owners, but good news for used buyers.

What is happening to used EV prices now?

The picture changed in 2026. Fuel prices rose sharply after conflict in the Middle East, and demand for used EVs jumped. The SMMT reported a 67% rise in used EV sales in the second quarter of 2026, with EVs taking 5.5% of the used market.

Auto Trader’s data shows prices following demand:

Month (2026)	What Auto Trader reported
August	Used EV prices up 3.8% year on year, like for like, to £25,095. Three to five-year-old EVs up 9.4%
September	Used EV demand up 40% year on year, supply up 26%. EV prices up 2.8%, the only fuel type to rise

Online car wholesaler Autorola found that used petrol and electric cars reached price parity for the first time in the first quarter of 2026.

The picture is not the same for every car. Auto Trader stresses the importance of looking beneath the market averages, and newer cars across the whole market were still falling in value in September 2026. Nearly new EVs can still lose value quickly, partly because the government’s Electric Car Grant knocks up to £3,750 off some new EVs under £37,000, which pulls down the value of their nearly new equivalents.

Will used EV prices keep rising?

Nobody can say for certain. Things that could push prices up:

• High petrol and diesel prices, which make EVs more attractive to run
• Growing confidence in battery life, helped by battery health certificates
• Tighter supply of popular three to five-year-old models

Things that could push them down:

• More ex-lease EVs coming onto the market as new EV sales grow
• New EVs becoming cheaper, including through grants and discounts
• The new 3p-a-mile pay-per-mile tax on EVs from April 2028. See what pay-per-mile means for used EV buyers
• Any changes announced at the Autumn Budget on 28 October 2026

What depreciation means if you are buying

• Nearly new can be the best value. One to two-year-old EVs often carry the biggest discount compared with new, especially on models that were heavily discounted new.
• Three to five-year-old cars are in demand. You may have less room to negotiate on popular models, but there is more choice than ever.
• Battery health affects value. Industry research suggests buyers will pay more for a used EV with a certified battery report. Use a report to check the battery and to negotiate.
• Think about total cost, not just the price. Low running costs can more than make up for a slightly higher purchase price. See should you buy a used electric car?

What depreciation means if you are selling

• Get a battery health certificate. A good result is a selling point and answers buyers’ biggest question.
• Keep the service history and the charging cables together with the car.
• Check what similar cars are actually selling for, not just asking prices. Our guide to checking your car’s value explains how.
• If you have finance outstanding, see selling a car with finance.

Frequently asked questions

Do electric cars depreciate faster than petrol cars?

They did in 2023 and 2024. In 2026, used EV prices have been rising while petrol and diesel prices have softened, though nearly new EVs can still lose value quickly.

Why are used electric cars so cheap?

Because of a surge of ex-lease cars, new EV price cuts and buyer nervousness in 2023 and 2024. Prices have been recovering in 2026.

Are used EV prices going up?

Yes, on average. Auto Trader reported year-on-year price growth for used EVs through the summer and into September 2026, led by three to five-year-old cars.

Is now a good time to buy a used EV?

There is more choice than ever and running costs are low, but prices on popular models are rising. Buy a car that suits you at a fair price rather than trying to time the market.

Sources and further reading

• Motor Trader: Auto Trader reveals used cars whose values rocketed or crashed
• Motor Trade News: Used EV demand up 40% in September
• Bodyshop: Used car prices steady but EV demand grows
• SMMT: Used car market returns to growth as EV sales accelerate
• Broker News: Used EVs (Autorola price parity)
• Carsa: Best used EVs for under £20,000 (2023 to 2024 price falls)
• Carwow: Electric car grant

About this guide: Rooster is a UK car insurance provider. This guide is general information for UK drivers, not financial advice. Used car values change month to month, so check current valuations before you buy or sell.

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