Car dealers should not treat the recent stabilisation of used electric vehicle residual values as an end to risk as rapid product development, changing incentives and fluctuations in supply are still capable of moving prices quickly.
Analysis from Cox Automotive indicates that the depreciation gap between electric and petrol vehicles is narrowing as the used EV market matures.
However, values continue to vary considerably between models and segments, requiring dealerships to assess each vehicle on its individual merits.
Data cited by Cox places average EV depreciation at between 38% and 42% after three years, compared with 35% to 40% for petrol vehicles. The figures give dealers a clearer starting point for valuations, but they do not remove the risk of buying stock at the wrong price.
Used battery electric vehicle transactions increased by 32% year on year during the first quarter of 2026 and as more electric cars return from fleets and salary sacrifice schemes, errors in acquisition and pricing could become more costly for dealer groups carrying larger volumes of used EV stock.
Fast change can reset EV values
Rapid product development remains one of the biggest challenges for dealers. New vehicles offering longer ranges, faster charging and improved battery technology can quickly change customer expectations and place pressure on the values of earlier models.
Manufacturer incentives and adjustments to new car prices can also affect nearly new EV values. A stronger finance offer or additional discount on a new model can narrow the price gap with a used example, forcing dealerships to review advertised prices and margin expectations.
Supply presents another risk. Increasing volumes of similar vehicles entering the wholesale market at the same time can weaken values, even where broader demand for used EVs remains healthy.
These factors mean dealers need to monitor live retail demand, stock age and competing new car offers rather than relying solely on historic depreciation patterns as vehicles that appear attractive at acquisition can become difficult to retail if the market moves before they are sold.
Vehicle evidence protects margin
Battery condition, vehicle range, charging capability, software support and service history are becoming increasingly important to the price a used EV can achieve.
Cox Automotive recommends obtaining a battery state of health reading before sale and providing the resulting report to prospective buyers. Dealers should also confirm that vehicle software is current, inspect charging cables and retain evidence of tyre, brake and battery cooling system checks.
This information can help dealerships distinguish well-maintained stock, support the advertised price and give customers greater confidence in the vehicle. Incomplete service records or missing battery data can weaken that confidence and make the car harder to value or sell.
Dealer groups may also need consistent EV appraisal standards across their networks. A common process for assessing battery condition, charging performance and specification could reduce differences between dealership valuations and improve control over buying decisions.
Cox said used EV depreciation is becoming easier to understand, but it is not yet predictable enough for dealers to relax their controls. Dealerships that combine live pricing data with model-specific knowledge and credible battery evidence will be better placed to manage stock risk and protect margin as volumes increase.
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