EVs plummet in price by 37.5% in just one year: "A real blow for electric car owners"

ELECTRIC vehicles (EVs) have plummeted in price by 37.5% in one year with financial experts saying it's a “real blow for owners”.

Prices for Britain’s most in-demand used electric and hybrid vehicles have dropped by as much as 37.5% over the past year, creating a buyers’ market for those looking to make the switch, according to the latest Used Car Index from AA Cars.

New data shows that the three most popular fully electric cars have lost on average a fifth of their value. 

The Nissan Leaf recorded the sharpest fall at 23.2%, followed by the Renault Zoe, down 22.1%, while the Tesla Model 3 saw its average price decrease by 16.4%. 

The average age across these three models in Q3 2025 was 4.6 years, down slightly from 4.8 years in Q3 2024.

The Lexus RX (hybrid) recorded the steepest average annual decline in value on the AA Cars platform, falling by more than a third (37.5%) in a year.

James Hosking, Managing Director of AA Cars, said: “The sharp decline in used EV prices over the past year signals a structural shift in the market. Vehicles that were once out of reach for many motorists are now entering a more affordable price bracket, widening access to electric motoring and accelerating second-hand adoption.

“We’re seeing a steady flow of early-generation EVs and hybrids coming onto the second-hand market as fleets and leasing firms de-fleet. That increase in supply is giving buyers more choice at more competitive prices.

“Our latest Used Car Index shows that over the past year, the majority of leading electric and hybrid models have seen double-digit price declines. Part of this reflects the ageing of early EVs, but the scale of the drop is unusually steep."

Scott Gallacher, Director at Leicester-based Rowley Turton, said there are some “real bargains” to be had now if you're looking for a new car.

He added: "The collapse in the price of EVs has been a real blow for electric car owners. That said, they remain excellent cars — particularly attractive for company car drivers thanks to the low Benefit-in-Kind rates. 

"For private buyers, these price falls could present some real bargains in the used market for those prepared to take the plunge. However, for anyone considering a new EV, leasing might be the smarter option, the lease company takes depreciation risk. The EV market may be volatile for now, but that doesn’t change the direction of travel — electric is here to stay."

Financial experts were divided over EVs.

Colette Mason, Author & AI Consultant at London-based Clever Clogs AI, explained why she believed the prices had fallen so far.

She added: "This is what happens when a new EV price war collides with 1st-generation tech. Buyers are rationally pricing in the real-world ‘write-off’ risk of a failed battery, the questionable ethics of lithium sourcing and catastrophic fires. An 80-100-mile range, typical of used cheaper models, is useless for long-distance drivers. 

"My last 13-hour campervan trip to the Isle of Skye was on one tank of fuel. In an EV, it would be a logistical nightmare of planned charging stops, akin to running a military operation, because the equivalent EV range is just 120 miles. Many are watching the new sodium-ion batteries, which are already in mass production.

“Data from industry leaders shows these new cells are already around 65% cheaper to make, all while matching the range of current lithium batteries, being more stable, and working perfectly in extreme cold. This collapse isn't a 'buyers' market.' It's the moment the market stopped pretending the hype is real and started pricing in the hassle.”

Clive Bonny, MD at Strategic Management Partners, said the numbers just don't add up and it's a “no brainer” to choose a petrol car instead.

He continued: "Ten years ago I bought a second hand Mercedes A200 for £13,500. It is now valued at £11,800 with 35,000 miles. The 2-litre engine gives 60 miles per gallon (MPG) and costs £20 per annum road tax plus £250 per annum servicing.

“It's good for another 20 years or more. EV's have a 10-year life, create 300% more recycled waste due to battery and shorter lifespan, use electric grid fossil fuel, have shorter journey limits, run silent so are more hazardous to cyclists and road walkers, and lifetime costs five times more to run. It's a no brainer.”

Dr Marianne Trent, Clinical Psychologist at Coventry-based Good Thinking Psychological Services, said the idea of buying an EV felt like "chaos”.

She added: "I don't yet own an EV but when I was recently given one as a courtesy car by my garage I was pleasantly surprised. The responsiveness was like nothing else I've ever driven. But what puts me off is the amount of pre-planning charging takes and what would feel like the mental load of another battery to charge. 

"This just isn't an issue for my petrol car. I always know I can nip into a garage for a 3-minute fill up and be good for many hours of driving. I feel like I can't commit to an EV until the time to charge is comparable to filling up with petrol or diesel.

“Managing a demanding car which needs constant plug-ins feels like inviting some kind of chaos I just don't need in my life at the moment.”

But Marcus Wright, Managing Director at Bolton-based Bolton Business Finance, said he was saving hundreds of pounds on fuel a month with his EV.

He continued: "I have had a Tesla for the last four years as my company car and it is my favourite car I have ever had. My wife also has an electric Audi, so we are a fully electric household and will likely never go back. 

"We now spend around £40-£50 a month charging at home compared to over £250 on petrol. Depreciation is an issue with any new car, especially electric but a Personal Contract Purchase (PCP) can protect you from this. I am looking forward to ordering the new Model Y Tesla in December."

Benjamin Blyth, Director at Daventry-based Houz Mortgages, also banged the drum for EVs.

He said: "Yes I'd buy another EV – what an opportunity at current prices. My Tesla Model 3 is one that has 'dropped in value' the most, apparently. That said, my iPhone is lower in value than it was when I bought it. So is the laptop I'm typing this on... Why are we so obsessed with depreciation when it's so normal? 

"I bought used, so benefited from that depreciation myself. I've saved £2,000 versus paying for petrol in the last 12 months. The car is faster than anything I've owned before. A smoother ride. It's ridiculously low maintenance and my charging is a fixed £30 per month for unlimited home charging thanks to Octopus. 

"My Tesla has now ticked over 100k miles. Still looks new and achieves over 300 miles range on a full charge (a previous Mini Cooper S I owned did 350 miles on a full tank – so I've never had range anxiety). There are more charging points in the UK than petrol pumps. It is of course personal preference, but every anti-EV argument I've ever heard is out of the window."