Used EV Prices Rise in 2026 - Is Depreciation Slowing?

Used EV prices start to rise in the UK 2026

Used EV prices are rising again. Has electric car depreciation finally slowed?

Used electric cars have earned a reputation for one thing manufacturers would probably rather buyers didn't dwell on. Depreciation.

Some models lost tens of thousands of pounds during the sharp correction in used values that followed the pandemic. Falling new-car prices, a growing supply of used stock and uncertainty among second-hand buyers all played a part. The latest figures, though, suggest the picture is changing.

According to Auto Trader's Retail Price Index for June 2026, the average advertised price of a used electric vehicle reached £24,662. On a like-for-like basis that was 1.6% higher than a year earlier, and the first annual increase in used-EV prices since December 2022. Used electric cars were also selling five days faster than the wider used-car market, at 25 days against 30.

So is the period of heavy electric-car depreciation over?

Not quite. But parts of the used-EV market are clearly becoming more stable, and that has consequences for anyone buying, selling or insuring one.

Used EV prices had been falling for more than three years

The return to growth follows a long period of falling values. Auto Trader's May 2026 index showed used-EV prices unchanged from a year earlier. Flat prices might not sound like major news, but the result ended 40 consecutive months of annual reductions. In the same month, electric cars sold in an average of 24 days, against 29 for the wider used-car market.

By June, the annual figure had moved from 0.0% to 1.6%.

This does not mean every used electric car became more expensive. Auto Trader's figure compares like-for-like advertised prices with the same period a year earlier, adjusting for changes in the mix of vehicles on sale. It still marks a change in direction. Buyers are moving more quickly, demand is stronger, and the balance between supply and demand is supporting firmer advertised prices.

Three to five-year-old EVs are leading the recovery

The improvement is strongest among electric cars aged between three and five years. Auto Trader reported average prices in this group up 8.9% year on year to £19,295, with stock leaving retailers in an average of just 21 days. That makes them one of the fastest-selling parts of the whole used market. Almost half of the used-EV enquiries Auto Trader recorded in May were aimed at cars in this age bracket.

There are a few reasons for it. A three to five-year-old EV usually costs a good deal less than it did new, yet may still have several years of its original battery warranty left. It may also offer more range and quicker charging than some of the earlier electric cars now sitting at the cheaper end of the market.

For buyers, that's a useful middle ground. Much of the steep initial depreciation may already have happened, while the vehicle still offers relatively modern battery and charging technology.

Not every EV is recovering at the same rate, though. A desirable three-year-old family SUV with a long range behaves very differently from an older city car with a small battery. Brand, model, range, charging speed, specification and battery condition all shape demand and resale value.

Used electric cars have become much more affordable

Part of what is driving demand is straightforward. Earlier price falls have put electric cars within reach of far more buyers. Auto Trader and Zapmap reported in April 2026 that more than one in four used EVs advertised on the platform were priced at £15,000 or less, with 45% available at £20,000 or less, up from 40% in January 2026.

A budget of £15,000 now buys electric models that would have been well out of range only a few years ago. And that affordability is feeding through into actual sales.

SMMT figures show that 86,943 used battery-electric cars changed hands in the first quarter of 2026. That was 32% more than during the same period in 2025 and gave battery-electric cars a record 4.3% share of the used-car market. Across the whole of 2025, used-BEV transactions rose 45.7% to a record 274,815 vehicles. Electric cars remain a relatively small part of the second-hand market overall, but they are no longer an unusual purchase.

Fuel prices have pushed more buyers towards electric

The cost of petrol has given buyers another reason to consider switching. During spring 2026, Auto Trader recorded a sharp rise in interest in both new and used electric cars as pump prices climbed. In April 2026, electric accounted for 29% of new-car enquiries on its platform, up from 17% a year earlier, and became the most popular fuel type on the site for the first time.

Auto Trader and Zapmap also estimated that, based on an 80% home and 20% public-charging mix, an EV driver could save up to £960 a year in energy costs compared with fuelling an equivalent petrol car.

This is an estimated fuel and charging saving, not a total ownership saving. It does not account for insurance, finance, depreciation, servicing, repairs or taxation. It will not apply to every driver either. Someone charging cheaply at home is likely to see a very different result from a driver who depends heavily on more expensive public rapid chargers. Even so, lower purchase prices combined with potential running-cost savings make a used EV easier for many buyers to justify.

So has electric-car depreciation finally slowed?

There is evidence that it has, particularly among affordable three to five-year-old models. That is not the same as saying it has stopped.

The 1.6% annual increase compares current prices with a fairly weak point in the market a year earlier. It also follows several years in which some electric cars shed a large share of their original value. A modest recovery does not reverse those earlier losses.

Plenty could still move used-EV values around. New manufacturers arriving in the UK, further cuts to new-car prices, large discounts and deposit contributions, subsidised finance, better range and charging speed, changes to company-car tax, the flow of ex-fleet electric cars, confidence in particular brands, and easier access to battery-health information. A new EV sold with a heavy manufacturer discount puts pressure on the value of nearly-new examples. A fresh generation of the same model with far better range can leave the outgoing version looking tired. So used-EV values may steady overall while individual makes and models keep swinging.

Battery condition is becoming part of the buying decision

Mileage has always been central to the value of a petrol or diesel car. For an electric vehicle, buyers increasingly want to know how much usable battery capacity remains.

Battery degradation is not the same as battery failure. An electric car can run perfectly well while slowly losing some of its original maximum range. Auto Trader found that buyers regularly ask retailers about battery health, but the information still isn't reported consistently in used-car adverts. Almost half of retailers surveyed said it was the customer who raised the subject.

As independent battery checks become more common, cars with clearly documented condition should get easier to value. Two otherwise similar electric cars could fetch different prices if one can show better remaining capacity. Before buying, it is worth checking:

How much of the original battery warranty remains, and whether it guarantees a minimum level of capacity
Whether an independent battery-health or diagnostic report is available
The displayed range at a full charge, bearing in mind this changes with temperature and recent driving
How the real-world range is likely to hold up in winter
Whether the charging speed meets your likely needs

What should you check before buying a used EV?

Firmer prices are good news for existing owners. But buyers should still research the individual car rather than trusting the direction of the wider market.

Start by lining up several examples of the same model, age, battery size, mileage and specification. A higher trim, a heat pump, a faster onboard charger or desirable optional kit can affect both demand and value. It's also worth comparing the used price with the car's original list price. A car advertised at £20,000 looks cheap when it cost £45,000 new. That doesn't automatically make it a bargain. The price may reflect limited real-world range, softer demand for that model, or a newer replacement with better technology.

Beyond the car itself, weigh up battery and vehicle warranty cover, realistic summer and winter range, home-charging availability, public charging costs, insurance premiums, tyre and repair bills, Vehicle Excise Duty, your likely annual mileage, how long you plan to keep it, and its possible future resale value.

The right used EV can be a lot of car for the money. The important point is understanding why that particular model is priced where it is.

What happens if a used EV is written off?

Here's the part that often catches owners out. The price paid for a used electric car and the amount a comprehensive motor insurer may pay after a total loss are not necessarily the same.

Motor insurers generally settle total-loss claims using the vehicle's market value immediately before the loss, subject to the terms of the motor policy. And that value can change after the car is bought.

A simple example

Say someone buys a used EV for £24,000. Two years later it's stolen and never recovered. If the motor insurer decides its market value immediately before the theft was £17,500, that leaves a £6,500 difference between the original purchase price and the motor insurer's settlement.

For simplicity, this example excludes any motor-insurance excess or other deductions. It is only an illustration. The actual result would depend on the model, age, mileage, condition, specification, market and motor-insurance settlement.

It shows why a period of improving used-EV prices doesn't remove the potential purpose of GAP insurance.

Can you buy GAP insurance for a used electric car?

GAP insurance isn't restricted to brand-new vehicles. Eligible used electric cars can be covered, although vehicle age, mileage, purchase date, purchase price and other conditions apply.

With current Total Loss GAP products, Return to Invoice GAP can cover vehicles up to 10 years old and 100,000 miles at the point you take out cover, with some products limited to 8 years and 80,000 miles. Vehicle Replacement Insurance has tighter limits, generally requiring the vehicle to be no more than four years old and under 40,000 miles when the policy starts. Cover must normally be bought within 180 days of taking delivery. Other eligibility conditions, exclusions and policy limits apply, so the full policy terms should always be checked.

Return to Invoice or Vehicle Replacement Insurance?

The type of GAP insurance can affect how a total-loss claim is calculated.

Return to Invoice GAP is designed to cover the difference between the motor insurer's total-loss settlement and the amount originally paid for the vehicle, subject to the policy terms and claim limit.

Vehicle Replacement Insurance takes a different route. For an eligible used vehicle, it may cover the difference between the motor insurer's settlement and the cost of replacing the car with an equivalent vehicle matching its age, mileage and specification when it was first bought. So if someone bought a three-year-old EV with 25,000 miles, the replacement benchmark would generally be an equivalent three-year-old car with roughly 25,000 miles, rather than a five-year-old car at the time of the claim. The exact calculation is always subject to the wording, limits and exclusions of the individual policy.

This distinction could matter more if used-EV prices keep recovering. If the cost of an equivalent replacement has risen, the replacement cost may come out higher than the amount originally paid. In other cases, returning to the original invoice price produces the higher figure.

Thinking about a used EV? It's worth checking whether it qualifies for cover before you buy, so you know where you stand on any shortfall. Check GAP insurance eligibility and get a quote.

A steadier market doesn't make individual values predictable

Used electric cars are selling faster, more people are buying them, and annual advertised prices have returned to growth. Encouraging signs for EV owners.

The strongest demand sits with three to five-year-old cars at more accessible prices. Buyers there may find cars that have already taken much of their heaviest initial depreciation while keeping modern technology and part of the original battery warranty.

It's still too soon to say the depreciation problem has disappeared. New-car discounts, shifting technology and differences between individual models can all produce big swings in value. A 1.6% rise across the wider market doesn't mean every used electric car will hold its price.

What the evidence points to instead is a more settled stage. Used-EV values are increasingly driven by the same basic factors as any other used car. Affordability, supply, demand, condition, and whether the vehicle meets what buyers actually need. For anyone weighing up a used EV, that's encouraging. It still pays to look hard at the individual car, and to think about what may happen to its value after you drive it away.