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UK Used Electric Vehicles Retain Less Than Half Their Value After Two Years

Rapid value losses prompt government consideration of dropping the expensive car tax supplement to bolster a struggling used EV market.

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Overview

  • Cox Automotive data shows nearly-new EVs average just 49% of their original value after 24 months, down from 83% in 2022.
  • Manufacturers applied £4 billion in discounts on new EVs last year—about £11,000 per vehicle—to hit ZEV sales quotas.
  • The Zero Emission Vehicle mandate requires EVs to make up 28% of new car sales this year and rise to 80% by 2030, with fines for non-compliance.
  • Car rental and leasing firms face steep losses on fleet renewals and the BVRLA has called for VAT cuts or grants to support used EV buyers.
  • Transport minister Lilian Greenwood is weighing removal of the expensive car tax supplement to boost demand and stabilise resale values.