Used EV prices fall as new Chinese brands reshape the market
Used electric car prices in the UK are falling at a faster rate than petrol and diesel equivalents, according to recent market data. While price drops are not unusual in the used market, the pace and consistency of recent declines suggest a structural shift rather than a short-term correction.
Several forces are acting at once, but one of the most significant is the arrival of lower-priced new EVs — particularly from Chinese manufacturers — which is changing how both new and used cars are valued.
What’s driving used EV prices down?
The used EV market is being influenced by supply from multiple directions:
- Large numbers of early leased EVs returning to the market
- More choice in the new EV sector, often at lower price points
- Discounting on new cars that narrows the gap with used models
When new cars become cheaper or better equipped for the same money, pressure quickly transfers to the used market. That effect is now becoming visible across a wider range of electric models.
The role of Chinese EV brands
New entrants from China are accelerating this shift. Brands such as BYD, MG and others have introduced EVs that undercut established rivals on price while offering competitive range and equipment.
That doesn’t just affect their own segment. Lower new-car pricing sets a new reference point across the market, forcing established brands to respond — either through discounts, revised specifications or new models.
Why EV depreciation behaves differently
Depreciation has always been a feature of car ownership, but EVs bring additional variables. Technology evolves quickly, and improvements in range, charging speed and efficiency can make older models feel dated faster than their petrol or diesel equivalents.
At the same time, demand remains uneven. While some buyers are keen to adopt used EVs, others remain cautious, which can widen the gap between asking prices and actual transaction values.
What this means for the wider market
Falling used prices are not necessarily a negative outcome. Lower entry points make EVs accessible to more buyers and help broaden adoption beyond early adopters and fleet users.
For manufacturers and leasing companies, however, faster depreciation complicates forecasting and residual value assumptions — particularly as new competitors continue to enter the market.
Where prices could go next
Much depends on how aggressively new EVs are priced over the next few years, and how quickly infrastructure and consumer confidence develop alongside them.
What is clear is that the used EV market is no longer following the same patterns as petrol and diesel cars — and that divergence is likely to become more pronounced rather than less.