Heavy discounting on new electric cars is driving down the prices of nearly-new models, new analysis reveals.
Cox Automotive says that residual values of used EVs up to 24 months old are being particularly affected by the push on new electric cars.
Back in 2022, two-year-old electric cars held onto an average of 83 percent of their original cost new (OCN) when sold to the trade. Fast-forward three years, and they now retain only 47 percent of OCN.
This means that used EVs aged up to 24 months old are typically losing 53 percent of their value. Cox Automotive compares this to a similarly-aged diesel car, which loses only 30 percent of its original cost new.
“2022 did see used prices reach a peak following the supply constraints around the Covid-19 pandemic,” said Cox Automotive insight director Philip Nothard. “However, the current performance of nearly-new EVs in the used market is still much lower than we would anticipate for vehicles in this age profile.
“The heavy discounts offered on new vehicles mean that consumers can pick up a brand new car for the same price as a nearly-new model. This gives consumers very little incentive to consider them, which is a real blow to a market that needs all the incentives it can get its hands on.”
The SMMT estimated that discounts on new EVs totalled around £4 billion in 2024, and such heavy discounting has continued in 2025.
On the flip side, added Nothard, older EVs aged three to five years are performing strongly. “At auction, these vehicles have seen only a modest drop of 15 percent in the same time period – as they aren’t impacted as severely by heavy manufacturers’ discounts and tend to attract a different driver.”
Nothard is now calling for more support for the used EV sector “to put the brakes on the rapid pace of depreciation”.
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