Used Electric Car Prices in 2026: Are They Rising or Falling?
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Used electric car prices have turned. After a 40-month run of annual declines, Autotrader reported like-for-like used EV prices up 3.8% year-on-year in August 2026, with three-to-five-year-old models up 9.4% to an average of £20,351. Demand is growing faster than supply, used EVs are selling in an average of 27 days, and SMMT recorded a 67.0% rise in used battery electric sales in the second quarter of 2026. For buyers, that means the timing question has changed from waiting for further falls to understanding where prices now sit.
Whether you're considering a used electric car salary sacrifice through your employer or exploring the second-hand market independently, this guide breaks down what's happening in the market right now, why prices fell and have now turned, and how you can make the most of it.
What Is Happening to Used Electric Car Prices in 2026?
The headline story has changed. Autotrader’s data shows used EV prices rising year-on-year, following growth of 3.3% in July, when the average asking price was £24,946 and annual growth was the strongest Autotrader has recorded for electric cars. June brought a 1.6% rise, the first annual increase since December 2022, after May came in flat at 0.0%.
The strongest movement is in younger cars. Three-to-five-year-old EVs averaged £20,351 in August 2026, up 9.4% year-on-year, and sold in an average of 26 days. Autotrader describes the Covid-era supply gap as having moved into the five-to-seven-year-old cohort, which limits the availability of high-volume models and supports prices in the age bracket most buyers look at first.
Why Did Used Electric Car Prices Fall, And Why Have They Turned?
Several factors pushed used EV prices down through 2023, 2024 and 2025, and a different balance of supply and demand is now pushing them up.
An Influx of Supply
As finance and salary sacrifice terms end, large volumes of electric cars that were leased or purchased three or more years ago are now returning to the market. This created a wave of supply that demand, while growing quickly, took time to absorb. Autotrader’s July 2026 figures show how far conditions have moved: used EV demand grew 13.9% year-on-year, ahead of supply growth of 5.7%.
The Arrival of More Affordable New EVs
As new electric cars become cheaper, some buyers who might previously have considered a used EV are now opting for new. This diverts demand away from the second-hand market and puts further pressure on used car prices.
Battery Uncertainty Among Buyers
Concern about older battery technology continues to affect buyer confidence in the used market, particularly for early-generation EVs Many consumers remain unsure what to look for when evaluating a used electric car's battery health, which leads to a risk discount being applied to older vehicles. In reality, modern EV batteries are built to last. Most manufacturers provide battery warranties covering eight years or 100,000 miles, and generally used EVs remain reliable. An important practical step is to check the battery warranty terms and a battery health report for the specific car.
Why Are Used Car Prices Rising?
Prices turned when the wave of returning cars eased, and demand kept growing. In July 2026, Autotrader stated that the used EV turnaround was supported by sustained buyer appetite and tightening supply, and that May’s flat reading had ended a 40-month run of annual declines.
How Much Does a Used Electric Car Cost in 2026?
EV range is broad, with plenty of options to choose from. Here’s how used EV prices compare with the wider used car market in Autotrader’s latest published data:
| Segment | Month | Average price | Change year-on-year |
|---|---|---|---|
| All used EVs (like-for-like) | July 2026 | £24,946 | +3.3% |
| Three-to-five-year-old EVs | August 2026 | £20,351 | +9.4% |
| All used cars (like-for-like) | July 2026 | £17,106 | +0.8% |
Source: Autotrader, July 2026; August 2026 figure via Renewable Energy Magazine (replace with Autotrader's own August release when located).
Prices will vary by mileage, trim level, and condition. For a personalised view of what a used EV could cost you through salary sacrifice, use our savings calculator.
How Is the Used EV Market Performing?
The picture is one of strong growth. According to SMMT data released in early 2026, used BEV sales jumped 45.7% year-on-year in 2025 to a record 274,815 transactions, pushing BEV market share in the used sector to 3.5%, up from 2.5% in 2024. When plug-in hybrids and conventional hybrids are included, nearly one in ten used cars sold in 2025 was electrified. That momentum carried into 2026. SMMT recorded 110,761 used BEV transactions in the second quarter, up 67.0% on the same quarter of 2025, which lifted BEV share of used car transactions to 5.5% from 3.3% a year earlier.
Critically, used EVs are not only selling in greater numbers. They’re selling faster than petrol or diesel alternatives. Autotrader data shows that used EVs took an average of 25 days to sell in July 2026, compared with 31 days for the used car market as a whole, five days quicker than petrol and 11 days quicker than diesel. In August 2026, used EVs averaged 27 days, and three-to-five-year-old EVs averaged 26 days.
Autotrader also reports that EVs now make up more than one in five sales of used cars aged up to five years old.
What Dealers Are Paying for Used EVs: Motorway's Q3 2026 Data
The retail figures above show what buyers are paying. The trade side tells the same story from the other direction. The Motorway National Car Index for Q3 2026, which tracks prices achieved by private sellers on Motorway, the UK's largest car-selling platform, shows that used EV sales volume on the platform rose 115% year on year between 1 July and 8 September 2026. Sellers received 6% more for a used EV than twelve months earlier, and used EVs attracted 29% more dealer bids than the average car listed. The Tesla Model 3 is now the most in-demand used car on Motorway across every fuel type.
Hello, World!
Source: Motorway National Car Index, Q3 2026. Data extracted 8 September 2026.
The bid figure matters because dealers only bid on a car they believe they can retail quickly at a margin. Rob Nicholls, Principal Data Scientist at Motorway, said: "The gap between how quickly EVs lose value against petrol or diesel has narrowed a lot. This quarter, sellers received 6% more than a year ago for a used EV."
Oleg Korolov, who leads SEO and website at The Electric Car Scheme and spent four years tracking EV and automotive registration data at the research group New AutoMotive before joining, has followed the used market since the first EVs reached it. "When I started tracking this in 2020 the used EV market was a rounding error, because the new EV market was only just getting going. The cars bought in the 2021 and 2022 adoption wave are now arriving second-hand in volume, and the difference from the data I was looking at then is that the trade has stopped treating them as a risk. Dealers are not stocking used EVs out of duty, they are outbidding each other for them. That is what puts a floor under prices, and it is why the Autotrader numbers above have turned positive."
The same shift shows in our own orders. Used cars have made up 29% of lease orders through The Electric Car Scheme in 2026 so far, with the Tesla Model Y the most ordered used car, followed by the BMW i4 and the Volvo XC40. These are cars most employees would never buy new, at a monthly cost that works once the first owner has absorbed the steepest depreciation.
If you have a car to sell before switching, The Electric Car Scheme is partnered with Motorway, so you can sell your current car through Motorway and have its dealer network bid on it, with collection from home. If that car is already an EV, you are selling into a market where dealers bid 29% more often and paid 6% more than a year ago.
Will Used EV Prices Rise or Fall in 2026?
This is the question on many buyers' minds. The short answer is: expect stabilisation rather than further sharp falls, with some upward pressure likely by mid-2026, and the latest data points to rises. Used EV prices have grown year-on-year in each of June, July and August 2026, and Autotrader has described supply as tightening.
Autotrader’s June 2026 figures show supply as constrained in older cohorts, where the Covid-era gap in new car production is now working through the market. That’s likely to keep supporting prices for good-quality used EVs, particularly in the three-to-five-year bracket, although future prices can’t be guaranteed.
Two caveats apply. Prices still vary widely by model, and Autotrader’s June 2026 data showed the BMW i5 down 16.1% and the Peugeot E-3008 down 13.9% year-on-year. Growth across the wider used car market is also modest, at 0.8% year-on-year in July 2026, so buyers shouldn’t assume the recent rises will continue.
Should I Salary Sacrifice a Used Electric Car?
If your employer offers an electric car salary sacrifice scheme, salary sacrificing a used EV is one of the most cost-effective ways to get behind the wheel of an electric car. Here's why.
Through an electric car salary sacrifice scheme, the cost of leasing an electric car is deducted from your gross salary, before income tax and National Insurance are calculated. This means you effectively pay less tax, and employees typically save 20 to 50% compared with a personal lease.
Combined with the current Benefit-in-Kind (BiK) rate of 4% for electric vehicles in 2026/27, rising to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30, the total financial advantage over petrol or diesel alternatives is substantial. A petrol or diesel company car can attract BiK rates of up to 37% in 2026/27, rising to 38% in 2028/29 and 39% in 2029/30, so the tax treatment of EVs under salary sacrifice is dramatically more favourable.
Used Electric Car Salary Sacrifice: Example Savings
The examples below are based on a £60,000 taxpayer, leasing for 36 months at 10,000 miles per annum, with maintenance and breakdown cover included.
| Per month | Used Audi Q4 e-tron | Used Tesla Model 3 | Used VW ID.3 | New VW ID.3 |
|---|---|---|---|---|
| Average monthly salary sacrifice (inc VAT) | £660 | £557 | £406 | £868 |
| Income tax saving | -£264 | -£223 | -£162 | -£347 |
| National Insurance saving | -£13 | -£11 | -£8 | -£17 |
| Average BiK tax over the term | £109 | £100 | £75 | £77 |
| Net monthly cost | £492 | £424 | £311 | £581 |
Source: The Electric Car Scheme quote tool, October 2026. Based on a £60,000 salary, 40% taxpayer, 36-month term and 10,000 miles a year, with maintenance and breakdown cover included. Figures are illustrative estimates and vary by salary, vehicle and term.
The comparison between the two VW ID.3 models shows how much the choice of car matters. The used ID.3 costs a net £311 a month against £581 for the new model, a difference of £270 a month, or around 46% less. Salary sacrifice on a used car is available through our used electric car salary sacrifice range.
These are illustrative examples. Use our quote tool for a personalised figure based on your salary and preferred model. Stock of used EVs is available on a first-come, first-served basis. Savings are estimates and vary by salary, vehicle and term
You can also bundle maintenance, breakdown cover, comprehensive insurance, and even a home EV charger installation into your salary sacrifice agreement, keeping everything simple and maximising your tax savings across the board.
What Should I Consider Before Getting a Used Electric Car?
Daily Driving Distance
If you regularly drive long distances, make sure the used EV you're considering has sufficient range for your needs. Compare the manufacturer’s WLTP range figure with your regular journeys, because real-world electric car range changes with speed, temperature and load.
Charging Options
The ability to charge your car conveniently is crucial. Do you have off-street parking where you could install a home charger? Or does your workplace offer charging points? If neither, The Electric Car Scheme's Charge Scheme allows you to salary sacrifice your EV charging costs, and employees can typically save 20 to 50% on charging costs.
To ease the move from petrol to electric, you can:
Research the public chargers near your home and workplace before the car arrives
Arrange a home charger installation if you have off-street parking
Use a charge-point map app such as ZapMap to find and compare chargers
Battery Health
When considering a used EV, always check the battery health report or ask for a battery warranty. Look at the stated real-world range and compare it to the manufacturer's original specification; a degradation of 10–15% after several years of use is normal and manageable. Read our beginner's guide to EV charging to understand how to maintain battery health going forward. Charging habits also affect battery health over time, so the basics of EV charging are worth learning before collection.
Running Costs
Used EVs are significantly cheaper to run than petrol or diesel alternatives. Home charging typically costs around 26p per kWh on a standard tariff, based on Ofgem’s price cap of 26.32p per kWh (Great Britain average, Direct Debit) for 1 October to 31 December 2026, and EVs need less routine maintenance than petrol or diesel cars: no oil changes, fewer brake replacements thanks to regenerative braking, and fewer moving parts overall. The full cost of running an electric car depends on your tariff, mileage and where you charge.
Why Lease a Used Electric Car Rather Than Buy One Outright?
There are several compelling reasons to lease rather than buy, particularly through an electric car salary sacrifice scheme.
Depreciation risk is lowered. Electric car technology is advancing rapidly, and residual values for EVs remain uncertain. When you salary sacrifice, the cost of depreciation is factored into your monthly payment from the start, and you hand the car back at the end of your lease and move on to a newer model. You never have to worry about what the car is worth in three years.
Flexibility. Leasing gives you the freedom to upgrade to the latest technology at the end of your agreement. Given the pace at which EV ranges, charging speeds, and software are improving, this is a meaningful advantage over outright ownership.
Complete protection. Through The Electric Car Scheme's Complete Employer Protection, both employers and employees are protected from day one against unexpected costs, with no exclusion periods and no excess to pay.
Everything bundled. Unlike buying outright, a salary sacrifice lease can include servicing, maintenance, breakdown cover, and insurance, all in one simple monthly payment, all taken from pre-tax salary.
What’s It Like To Own a Used Electric Car?
Two members of The Electric Car Scheme team have switched to a used EV, and their experiences show what the first few weeks can involve. Kerri, from Customer Operations, moved from a 2012 Kia Rio to a used MG ZS EV. Charging was her biggest adjustment, and researching local chargers in advance, installing a home charger and using ZapMap made it manageable. She describes the switch as a real change to her daily life and wouldn’t go back.
Thom Groot, co-founder and CEO of The Electric Car Scheme, drives a used Kia Niro EV as a family car. He chose a used car because the monthly cost was lower than a new equivalent and delivery was faster, and he found the team’s updates on the car’s condition and delivery reassuring. Both accounts are individual experiences rather than typical outcomes, and the same lesson applies to each: plan your charging before the car arrives.
Frequently Asked Questions
Are Used Electric Car Prices Rising or Falling in 2026?
Used electric car prices are rising overall. Autotrader reported like-for-like used EV prices up 3.8% year-on-year in August 2026, following rises of 3.3% in July and 1.6% in June. Prices still vary by model, and some, such as the BMW i5 and Peugeot E-3008, were down more than 13% year-on-year in June.
What Is the Average Price of a Used Electric Car in the UK in 2026?
Autotrader’s July 2026 data puts the average like-for-like asking price of a used EV at £24,946, while three-to-five-year-old EVs averaged £20,351 in August 2026. Prices vary with age, mileage and model.
Can I Salary Sacrifice a Used Electric Car?
Yes. The Electric Car Scheme offers used electric car salary sacrifice, allowing employees to typically save 20–50% compared with personal lease, with payments taken from pre-tax salary. Used stock is available on a first-come, first-served basis and can be delivered in as little as 14 days.
What Is the BiK Rate for Used Electric Cars on Salary Sacrifice?
The BiK rate for all electric vehicles, new and used, is 4% for the 2026/27 tax year. This is the same rate regardless of whether the car is new or used, and it rises to 5% in 2027/28, 7% in 2028/29 and 9% in 2029/30.
How Quickly Are Used EVs Selling in 2026?
Used EVs are selling in an average of 25 to 27 days, according to Autotrader. They took 25 days to sell in July 2026 and 27 days in August, compared with 31 days for the used car market as a whole in July. Three-to-five-year-old EVs averaged 26 days in August.
Explore Used Electric Car Salary Sacrifice with The Electric Car Scheme
Used electric car prices have started to rise, but the used EV market still offers wide choice, and salary sacrifice remains a tax-efficient way to access it. Whether you're looking for a budget-friendly city car, a spacious family hatchback, or a premium used SUV, there's a used electric car on The Electric Car Scheme that suits your needs, and with salary sacrifice savings of 20–50%, it's the most affordable way to make the switch to electric. With salary sacrifice, employees typically save 20 to 50% compared with a personal lease, which makes it the most affordable route into electric driving. Used EVs can be delivered in as little as 14 days.
Explore our used electric car salary sacrifice options or calculate your personal savings today.
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Last updated: 18.02.26
Our pricing is based on data collected from The Electric Car Scheme quote tool. All final pricing is inclusive of VAT. All prices above are based on the following lease terms; 10,000 miles pa, 36 months, and are inclusive of Maintenance and Breakdown Cover. The Electric Car Scheme's terms and conditions apply. All deals are subject to credit approval and availability. All deals are subject to excess mileage and damage charges. Prices are calculated based on the following tax saving assumptions; England & Wales, 40% tax rate. The above prices were calculated using a flat payment profile. The Electric Car Scheme Limited provides services for the administration of your salary sacrifice employee benefits. The Electric Car Scheme Holdings Limited is a member of the BVRLA (10608), is authorised and regulated by the FCA under FRN 968270, is an Appointed Representative of Marshall Management Services Ltd under FRN 667174, and is a credit broker and not a lender or insurance provider.
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