Subsidies for used electric cars: Agora warns of rising prices

Image: Kia (illustrative)

In discussions about possible subsidies for used electric cars, Agora Verkehrswende advises caution. As a recent analysis by the think tank shows, the impact of subsidized prices on the used car market is difficult to control. Subsidies for used electric vehicles are likely to drive up prices due to increased demand and spillover effects. A charging voucher, distributed specifically to low-income households without private charging facilities, would be a more suitable policy tool.

"A purchase incentive for used electric cars could distort the market negatively," says Dr. Wiebke Zimmer, deputy CEO of Agora Verkehrswende. "The supply is already limited, and demand has risen sharply in recent months. Prices for used electric cars will likely remain high for the foreseeable future. It is therefore even more important to improve affordability, especially for households with lower incomes. A charging voucher could allow the federal government to reach the right target groups more efficiently and accurately."

In its analysis, Agora shows how the used car market for electric vehicles functions, what factors influence purchasing interest, and what options are available to policymakers. The price of used electric vehicles has ambiguous effects: while low prices are attractive to buyers, they also indicate greater value loss for new vehicles. Unstable residual values for electric vehicles would weaken confidence in the market and lead to hesitation in purchasing, especially for new cars. However, for more used electric vehicles to enter the market, sales of new cars must also continue to rise.

High interest, but also high information needs

Used cars, unlike new cars, are primarily purchased by private individuals. Demand far exceeds supply. In August 2026, electric vehicles accounted for 5.3 percent of the used car market (in absolute terms: 26,769 ownership transfers); this figure was 3.9 percent in the same month the previous year. The highest demand comes from higher-income groups, but around 37 percent of potential buyers in households with a monthly net income of less than 2,000 euros can also imagine purchasing a fully electric used car. This is shown by a representative survey conducted in August 2025, prior to the current energy price crisis.

Marion Vieweg, project manager at Agora Verkehrswende, emphasizes, citing further survey results, that despite growing interest, much can still be done to reduce reservations and uncertainties about electric mobility, even among more open consumer groups: “The technology is advancing rapidly. Common doubts about the practicality or cost-effectiveness of electric vehicles are often unfounded. Therefore, it is important to expand information and testing opportunities related to electric mobility.”

To boost confidence in used electric vehicles, the think tank also recommends accelerating the development of an international standard for evaluating battery quality. Consumers should be able to compare test results regardless of the manufacturer. For households with lower incomes, it is also necessary to facilitate the expansion of private charging infrastructure in multi-family buildings.

Agora Verkehrswende sees a strain on the market in the significant number of used electric vehicles exported from Germany. In the first half of 2026 alone, 33,700 vehicles were exported, while only 4,700 were imported during the same period. These exports mainly went to Denmark, the Netherlands, Finland, and Belgium, as internal combustion engine vehicles are subject to high taxes there.

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About the Author

Thomas Langenbucher is an expert in electromobility with professional experience in the automotive industry and finance sector. Since 2011, he has been covering electric vehicles, sustainable technologies, and mobility solutions for ecomento.de. Learn more.

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