The value of second-hand electric vehicles increased by 1.2 percent at the three-year mark in May, marking the first positive monthly movement since September last year and indicating growing confidence in the used EV market. The rise follows higher demand, especially for models below £20,000, and stands in contrast to overall used car values which declined by 0.9 percent. Analysts note that demand from the three-to-six-year age group is driving growth, with enquiry levels up 50 percent year-on-year and faster sales. However, experts warn that the fundamental oversupply of used EVs remains and that long-term depreciation trends have not changed, even as geopolitical events temporarily boost prices.
The value of second-hand electric cars has risen for the first time in eight months in what could be a major turning point for zero-emission used motors.
While used car values remained resilient in May overall, EVs delivered the strongest performance this month, the latest figures from industry expert Solera cap hpi show. At the three-year mark, electric vehicle values rose by 1.2 per cent - or around £220. This is the first positive monthly movement since September last year and the strongest uptick since September 2022. The growth suggests increased confidence in the second-hand EV market, as higher driver demand begins feeding back into wholesale activity.
Dealers are reporting higher enquiry levels and stock shifting faster on well-priced models, especially those below the £20,000 mark. It comes after the Society of Motor Manufacturers and Traders revealed that one in five cars on sale in Britain is now electric.
Used EV values rose for the first time in 8 months: EVs at the 3-year mark saw values rise by 1.2% - around £220 - market analysts revealed Of all electric models assessed at the three-year point, 77 per cent either increased in value or remained unchanged during May. The strongest performers included the MG 5 estate, up 6.5 per cent, and the Mini Cooper, up 6.4 per cent.
Both the Polestar 2 and the popular Tesla Model 3 rose by 6.1 per cent. By comparison, values across all fuel types generally declined by 0.9 per cent during the month, equivalent to around £195. The rise in value could signal a turning point for used EVs, after Auto Trader reported in March that the online car-buying platform is seeing demand for used EVs increasingly driven by vehicles in the three- to six-year bracket.
The strongest performing EVs included the MG 5 estate, rising in value by 6.5%, and the Mini Cooper , up 6.4% in price RELATED ARTICLES Share this article Share HOW THIS IS MONEY CAN HELP Enquiries for this age group are up 50 per cent year-on-year and are the key driver of used EV growth this year. EVs in this bracket were selling, on average, in 25 days in 2026 - five days faster than the market average.
This strong demand is keeping prices steady within this bracket, unlike the ups and downs seen in the younger zero- to three-year EV market. Chris Plumb, head of current valuations at Solera cap hpi, said: 'There are clear signs that demand for used EVs has strengthened over recent weeks.
'Retailers are seeing more consistent consumer interest, and that is now feeding back into trade values as buyers return to the market with greater confidence. 'Some of the models that came under the greatest pressure earlier in the year are now starting to look particularly good value for money, which is helping stimulate retail demand.
' Read More Ferrari's first EV is ruthlessly mocked, described as 'straight to the junkyard trash' and even condemned by former boss - as share price slumps Toby Poston, CEO at the British Vehicle Rental & Leasing Association, said the growth in EV values had coincided with the rising cost of fuel triggered by conflict in the Middle East. 'This small rebound in used EV prices will be welcomed by fleet owners who have experienced years of relentless depreciation costing billions of pounds,' he said.
'This increase is almost entirely down to the recent surge in oil prices caused by the closure of the Strait of Hormuz. We can't rely on Trump and the Ayatollah. Conflict and trade disruption is no way to deliver decarbonisation.
' He added: 'The simple market economics that drove values down month after month have not gone away. The tsunami wave of used EV supply coming onto the UK market is outstripping demand from buyers.
'As long as this continues, electric cars will lose value far faster than their petrol or diesel equivalents. As a result, canny used car buyers can snap up high-spec, technology-packed, cheap-to-run vehicles at attractive prices.
' Tanya Sinclair, CEO of Electric Vehicles UK, added: 'Amid global instability, car prices are going to fluctuate. But research consistently shows that the total cost of owning, fuelling, servicing and running an EV is typically lower than that of petrol or diesel.
'And beyond the financials, drivers get a better experience in an EV - smarter technology, intuitive software, great performance, and a more responsive, enjoyable drive. '
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