Electric vehicles are shedding over half their value within just two years, driven by a wave of steep discounts from carmaker. The Telegraphhas more.
A typical EV now retains only 49% of its value after 24 months, a sharp decline from 83% as recently as 2022, according to Cox Automotive.
For a new car bought for £40,000, this would translate to a value of just £19,600 after two years.
The 51% depreciation figure compares with an average of only 30% for diesel and petrol cars, as shown in the bar chart below
Cox Automotive said the faster rate of depreciation among “nearly-new” EVs was being driven by the discount wars being fought by manufacturers, which have been aggressively cutting prices to help them meet Net Zero sales targets.
Under the so-called zero emission vehicle (ZEV) rules which are mandated by the Government, 28% of new car sales are meant to be electric this year with the target set to rise gradually until it reaches 80% in 2030.
The falling value of EVs is also being accelerated by the growing range of cheaper models available on the market.
The average price of a second-hand EV fell from £39,849 to £24,908 between April 2022 and April 2025, according to Autotrader. …
Brands made price cuts worth £4 billion on new cars last year, equivalent to a discount of about £11,000 per car, according to the Society of Motor Manufacturers and Traders.
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