New research has revealed the most common electric vehicles that have historically depreciated the fastest in the UK.
The research carried out by GAP insurance provider, ALA Insurance, found the Nissan Leaf, Renault Zoe, BMW i13, Jaguar I-PACE, Audi e-tron and the Mercedes-Benz EQC lose their value the quickest after being driven off the forecourt.
According to Auto Hit, many used examples of these models have lost a staggering 60-80% of their original list price within just four years.
Founder of ALA Insurance and expert in all things GAP Insurance, Simon England, explains that EV depreciation can be particularly steep due to the changes to battery technology and EV Government policies.
“EV depreciation moves at a quicker and steeper rate than non-EV cars because battery technology, charging speeds and Government incentives evolve so quickly. The research we have conducted however has shown that the fastest-depreciating EVs are mainly older-generation models rather than the latest vehicles, so I would urge anyone considering an EV not to be put off, the benefits of an EV certainly outweigh the cons.”
With EVs reducing in value at a much quicker rate than non-EV vehicles, the experts at ALA Insurance also looked further into the main reasons this is happening.
Rapid improvements to EV batteries
“An EV with a 150-200 mile real-world range looked competitive a few years ago, however, today drivers want more. Today a driver expects a 250-300 + mile range. As the newer range EVs offer longer range, faster charging and better battery durability the older EVs look a lot less desirable.”
Cuts to new car prices
“The motoring market is competitive so when manufacturers cut prices on new EVs, the value of used EVs often falls too. A recent example of this is Tesla, whose repeated price reductions affected resale values across much of the EV market.”
Concerns over battery health
“Even though EV batteries are highly advanced and often last well, many used-car buyers continue to worry about battery life and the overall health of the battery. Worries include battery degradation, future replacement costs and warranty expiration. The general concern for battery shelf life in EVs lowers demand for older models.”
Leasing-heavy sales
“Many EVs were sold through business leasing schemes, when large numbers come back on the used-car market at the same time, supply rises and as a result, prices fall.”
Advances to charging technology
“Is not surprising that older EVs charge a lot more slowly than newer models. A car that takes over an hour to fast-charge may struggle against a newer model that can add hundreds of miles in as little as 20-30 minutes.”
The research conducted by ALA Insurance did find some EVs that tend to hold their value better than others. This list includes: Porsche Taycan, Tesla Model Y, Kia EV3, Kia EV6, Hyundai Ioniq 5 and the Mercedes-Benz G-Class Electric. These models benefit from a stronger demand from consumers, a more competitive range and advanced charging technology that remains relevant.
Thinking of buying a used EV in 2026? Make sure to follow advice from Simon, “It may be ironic, but the fastest-depreciating EVs can often be the best bargains. A four-year-old Jaguar I-PACE or six-year-old Audi e-tron is a highly desirable car that can offer a luxury-car feel and comfort for the price of a new economy hatchback, but you need to be comfortable with older charging technology that may take longer and potentially higher maintenance costs. I would also urge all consumers to look into and consider investing in GAP insurance for that reassurance and peace of mind.”
