Warning issued to anyone with an EV as drives face major blow

Electric car owners have been issued a warning as a new analysis from top experts shows major depreciation hitting the EV market. According to a study by Cox Automotive, electric vehicles are losing over half their value in the first two years of ownership.

A study by the group found that a typical EV retains only 47% of its market value after 24 months on the road. This is massively down on the 83% value retention at EVs enjoyed as early back as 2022 with the increase of Chinese vehicles possibly to blame. The issue appears to only be affecting the electric car market with diesel vehicles expected to retain 70% of its market value over the same timeframe.

Philip Nothard, Insight Director at Cox Automotive Europe stressed there was "little incentive” for road users to make the switch to electric models.

He said: “2022 did see used vehicle prices reach a peak following the supply constraints around the Covid-19 pandemic.

“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 model 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 ongoing EV price war could have a major impact, with prices dropping due to a growing range of cheaper models.

The introduction of Chinese electric models, often selling at a much lower price tag, may only exacerbate the problem even further.

According to analysis from leading car marketplace brand AutoTrader, the average price of a second-hand EV has dramatically fallen in the past three years.

Research from the specialists found that prices are down from £39,849 to £24,908 between April 2022 and April 2025.

Northard adds: “The used market is a crucial source of profitability for the automotive sector. Within increasingly volatile market conditions, the strength and consistency of used operations are crucial.

“To ensure this, more support for the used EV sector is needed to put the brakes on the rapid pace of depreciation.”