The surge in new electric vehicle (EV) registrations, driven primarily by manufacturer discounts, is having a profound impact on the used car market, particularly for nearly-new plug-in models. According to new analysis from Cox Automotive, the heavy discounts offered on new EVs are dampening demand for used models aged up to 24 months.
In 2022, EVs aged up to 24 months retained an average of 83% of their original cost new (OCN) when sold to trade. However, by April 2025, this figure had plummeted to just 47% of their OCN. For comparison, diesel vehicles of the same age profile are expected to retain 70% of their original value.
Philip Nothard, insight director at Cox Automotive Europe, explained that the current performance of nearly-new EVs in the used market is lower than anticipated 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,” he said. “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.”
In contrast, EVs between three to five years old are performing strongly, with only a modest drop of 15% in the same period. These vehicles aren’t as severely impacted by manufacturer discounts and tend to attract a different type of driver.
Nothard emphasized the importance of the used market to the automotive sector’s profitability, stating, “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.”
The Society of Motor Manufacturers and Traders (SMMT) reported that used battery electric cars recorded the highest growth in quarter one of this year, increasing by 58.5% to 65,850 units and achieving a record 3.3% share of all transactions.
As the automotive market continues to evolve, the impact of new EV discounts on the used market remains a significant concern for industry stakeholders.
