WITH a commendable rise in EV registrations – up by 8.1% in April to hold an above 20% market share – comes an unfortunate downside: a hit to RVs.
According to recent Cox Automotive analysis, demand for nearly-new models in the used car market is down thanks to new car discounting, which the SMMT estimated to be in the region of £4 billion in 2024,.
Looking at EV residual values, Cox Automotive says 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.
Source: Manheim Auction Service
Graph illustrates average yearly trade sale price for EVs under 24 months old as a percentage of original cost new.
“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.”
On the flip side, 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, according to the Cox Automotive insight.
Nothard 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.”
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