A study shows that used electric cars lose less value than everyone thinks.
04/10/2026 14:00
Updated to
04/10/2026 14:00
For years, one of the biggest barriers to buying an electric car has been the fear that it would lose too much value over time. A new analysis challenges this perception: much of the difference in residual value compared to gasoline cars is due to temporary market dynamics, public policy design, and falling prices of new electric vehicles, rather than any structural flaw in the technology.
According to the aforementioned study, after accounting for inflation, purchase subsidies, and acquisition taxes, the residual value gap between battery electric vehicles (BEVs) and gasoline cars decreases from 12.9 to 7.7 percentage points by 2025. This is a significant adjustment that greatly changes the usual interpretation of such comparisons.
The prices of new electric cars distort the data
One of the factors that has most harmed the value of used electric vehicles is, paradoxically, the drop in prices of new models. When a manufacturer reduces the price of a newly launched electric car, it automatically diminishes the value of used units of the same model already on the market, even though those units remain unchanged in any way.
If used electric vehicles are compared to current prices of new cars, the gap relative to gasoline-powered cars shrinks even further, to just 2.6 percentage points according to analysts. This suggests that buyers value used electric vehicles much closer to gasoline cars than usual residual value indicators would suggest. Not all cars maintain the same residual value over time.
A market that doesn’t move as a unified block
Analysts emphasize that “the electric vehicle market does not function as a single entity.” Spain shows stable residual values for electric vehicles, France remains relatively strong, while Italy experiences more significant declines. Smaller electric vehicles perform better than larger and more expensive models, and European brands tend to maintain stronger values compared to others.
Historically, electric vehicles have lost more value than gasoline cars as their age and mileage increased, but that gap is narrowing. Recent data also show fewer fluctuations and a gradual stabilization in the residual values of BEVs, signs that reflect growing market confidence in this technology. Residual values are influenced by factors such as battery condition. Many studies indicate that batteries last much longer than initially thought.
Battery certificates and transferable warranties as trust builders
For analysts, battery health certificates, manufacturer-backed used car programs, and stronger transferable warranties could reduce buyers' uncertainty. Specific financing options for used electric vehicles and better-designed tax measures are also cited as potential solutions. According to the study’s source, all of these could boost buyer confidence and support stronger demand for used electric cars.
Source: T&E (Transport & Environment)
