Do Electric Cars Hold Their Value? EV Depreciation in the UK (2026)

The current picture

Used EV prices fell by roughly 10% year-on-year into 2026, and average three-year depreciation sits somewhere around 38 to 42%. That's meaningful, and it's been painful for people who bought new in the last few years.

But two things are shifting. Nearly-new EVs have shown signs of stabilising, with cars under 12 months old rising from around 52% to 56% of their original cost new between January and October 2025. And the used market is expanding fast: more than 274,000 used battery electric cars changed hands in the UK during 2025, up nearly 46% year-on-year. More buyers means more support for prices.

Why EV values have been falling

The ZEV mandate is the biggest single pressure. Manufacturers must hit rising zero-emission sales targets, so they discount new EVs heavily, particularly towards year-end, and every discount on a new car drags down the value of the equivalent used one behind it. Industry analysts consistently name this as the main risk to EV residuals.

Rapid technology improvement. A four-year-old EV competes against new cars with better range and faster charging. That's a harsher comparison than a four-year-old petrol car faces.

Early battery anxiety. Buyer uncertainty about battery condition suppressed used demand for years. This is now easing, largely because battery health reporting has improved, which is precisely the point of what we do.

Which EVs hold value best

Indicative annual depreciation rates. Verify against current data.

Tesla's strength comes partly from over-the-air software updates, which keep older cars feeling current, and partly from the Supercharger network's pull on buyers.

The general pattern: popular, well-known models now broadly match petrol depreciation rates, while older or niche models continue to fall faster. Model choice matters more than fuel type.

The factor that's now decisive

Here's what's changed most in the last couple of years. Battery State of Health has become the dominant factor in used EV pricing, in many cases more influential than mileage or age.

That's a genuine break from how used cars have always been valued. On a petrol car, mileage is a decent proxy for wear. On an EV it isn't: a carefully-charged 80,000-mile car can have a healthier pack than a hard-rapid-charged 40,000-mile one, and the market has started pricing accordingly.

Remaining battery warranty matters too. Cars still inside their battery cover are easier to sell and typically worth more than otherwise identical out-of-warranty examples.

We cover this in depth in how battery health affects resale value.

Why falling values are good news for used buyers

Depreciation is only a cost if you're the one absorbing it. If you're buying second-hand, someone else has already taken the hit.

In 2026 it's genuinely possible to buy a three or four year old EV from a strong brand, with decent range, good battery health and remaining warranty cover, at a price that would have looked unrealistic a few years ago. Combined with lower servicing costs, used EVs currently look like one of the better value propositions in the UK car market.

The catch is that you need to know what you're buying. When battery health drives price, and battery health isn't visible, checking it is the difference between a bargain and a mistake.

If you're selling

• Get a battery health report and show it. Evidence beats assertion, and dealers with battery health reporting have a measurable advantage.
• Mention remaining warranty explicitly. Most sellers don't, and it's worth real money.
• Keep service records, especially any documented battery health checks over time. A trajectory is more reassuring than a snapshot.