Electric vehicles under 24 months are retaining only 47% of their original cost new when sold through trade, as heavy discounts on new EVs drive down values in the used market.

The analysis, carried out by Cox Automotive, reveals how carmakers’ rush to meet ZEV mandate targets is negatively affecting the used car market.

During the all-important plate change month of March, a record 69,313 new EVs were sold, up 43.2% and driven predominantly by manufacturer discounts, alongside a raft of new product launches and dealerships being set up by new market entrants.

According to the Society of Motor Manufacturers and Traders (SMMT), OEMs discounted new EVs in the region of £4bn in 2024 – and the Cox Automotive analysis illustrates the impact of these discounts on the used market.

Looking at residual values, EVs aged up to 24 months old held an average of 83% of their original cost new (OCN) when sold to trade in 2022. This is in stark contrast to April 2025, where vehicles with the same age profile retain only 47% of OCN.

For context, the average diesel vehicle selling to trade with this age profile today is expected to retain 70% of its OCN.

Philip Nothard, insight director at Cox Automotive Europe, noted that 2022 did see used vehicle prices reach a peak following the supply constraints around the Covid-19 pandemic.

But he added that the current performance of nearly new EVs in the used market is still much lower than expected 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.”

Cox had previously warned that pressure to meet ZEV mandate targets could see carmakers prioritise pushing EV stock into the market through “aggressive” fleet and retail price strategies.

UK fleet operators, trade bodies and vehicle rental and leasing companies have also called for vital action to support used EV market and avoid derailing the zero-emission switch.

A letter, coordinated by the BVRLA and signed by a host of business leaders, went out earlier this spring to the Transport, Environmental Audit and Business Select Committees, calling for action to open up private buyer and SME access to used EVs and mitigate the volatile residual values denting market confidence.

On the flip side, the Cox Automotive data indicates that EVs between three to five years old are performing strongly. At auction, these vehicles have seen only a modest drop of 15% in the same time period as they aren’t impacted as severely by heavy manufacturer discounts and tend to attract a different driver.

Nothard continues, “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.”