Heavy discounts on new EVs are dampening demand for the nearly-new models available in the used car market, according to Cox Automotive.
EV registrations reached record volumes across the UK in March. A total of 69,313 new EVs were sold, driven predominantly by manufacturer discounts, alongside a raft of new product launches and dealerships being set up by new market entrants.
New analysis from Cox Automotive illustrates the impact of these discounts on the used market. Looking at residual values, 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 contrast to April 2025, where vehicles with the same age profile retain only 47% of OCN.
Cox said, for context, the average diesel vehicle selling to trade with this age profile today is expected to retain 70% of its OCN.
Philip Nothard, Insight Director at Cox Automotive Europe, explains, “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.”
But the EV narrative has a positive 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.”
Nothard continues, “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.”