Are Used Electric Car Prices Still Falling in 2026?
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The UK's used car market is undergoing one of its most significant transformations in decades — and electric vehicles are leading the charge. After years of sharp price declines, the used EV market is now maturing rapidly, with record sales volumes, stabilising prices, and growing consumer confidence all pointing to the same conclusion: 2026 is shaping up to be one of the best years on record to buy or lease a used electric car.
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 have fallen, and how you can make the most of it.
What Is Happening to Used Electric Car Prices in 2026?
The headline story is one of significant — but stabilising — price falls. According to Autotrader's Retail Price Index, used EV prices ended 2025 down 7.4% year-on-year, with the average used EV now priced at around £24,000. Broader market data from the AA Cars Used Car Index tells a similar story: average prices across the top 20 most-searched EV and hybrid models dropped 9.3% year-on-year in Q4 2025, settling at around £16,826.
To put this in perspective, average used EV prices once hovered around £39,000 at the height of the market in 2022. Three years on, those same cars are now available for closer to £20,000, and analysts at Cazoo have suggested prices could fall further toward £14,000 as supply continues to grow. For consumers, this price compression represents a genuine opportunity — and a significant shift from the premium pricing that made second-hand EVs feel out of reach just a few years ago.
The good news, however, is that the rate of decline is slowing. As James Hosking of AA Cars noted in January 2026, the market "is beginning to settle after a year of sharp adjustment." For those who've been waiting for the right moment to switch to electric, that moment is now.
Why Are Used Electric Car Prices Falling?
There is no single answer — several factors are working together to push prices down.
An Influx of Supply
The most significant driver is a structural one. Electric cars leased and purchased three or more years ago are now returning to the market in large volumes as finance and salary sacrifice terms end. This has created a significant wave of supply — one that demand, while growing quickly, has not yet fully absorbed. The volume of ex-fleet and ex-salary-sacrifice EVs entering the used market has been substantial, and many of these cars are in excellent condition. A Tesla registered in 2019, for example, can still offer a real-world range of over 250 miles.
The Arrival of More Affordable New EVs
As new electric cars become cheaper — helped by the arrival of competitively priced models and a growing market for budget EVs like the Dacia Spring — 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 many used EVs are extremely reliable. Understanding what happens to old electric car batteries can help demystify this concern.
How Much Does a Used Electric Car Cost in 2026?
The range is now genuinely broad, with used EVs available at price points that rival or undercut comparable petrol alternatives. Here's a snapshot of how representative models are currently positioned in the used market:
| Car | Approximate Used Price (early 2026) |
|---|---|
| Nissan Leaf (2019–2021) | £10,000–£14,000 |
| Renault Zoe | £9,000–£13,000 |
| Volkswagen ID.3 | £16,000–£24,000 |
| Tesla Model 3 (2020–2022) | £18,000–£26,000 |
| Hyundai IONIQ 5 | £22,000–£30,000 |
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.
The biggest price reductions have been seen in premium models. According to HPI data, vehicles like the Jaguar I-PACE, Mercedes EQC, and Tesla Model X are now priced more than £20,000 lower than their 2022 peak valuations. Some early Porsche Taycan models saw reductions of up to £40,000 from their high-water mark.
How Is the Used EV Market Performing?
The picture is one of remarkable 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.
Critically, used EVs are not just selling in greater numbers — they are selling faster than any other fuel type. Autotrader data shows that used EVs took an average of just 30 days to sell in December 2025, compared to 35 days for petrol cars. Three-to-five-year-old EVs — where pricing has broadly stabilised to match their petrol equivalents — sold even faster, averaging just 25 days on forecourt. In January 2026, the trend continued, with EVs selling in an average of 38 days versus 41 days for the overall market.
Autotrader's data shows that demand for used electric vehicles on its platform rose 28% year-on-year in 2025, with used EVs accounting for more than one in seven enquiries for cars under five years old. Autotrader
Will Used EV Prices Rise or Fall in 2026?
This is the question on many buyers' minds — and the short answer is: expect stabilisation rather than further sharp falls, with some upward pressure likely by mid-2026.
Autotrader's analysis indicates the volume of five-to-six-year-old cars entering the market is set to drop 25–30% in 2026 compared to 2024, with the situation expected to worsen further in 2027. Fleet News This supply constraint — a legacy of reduced new car production during the Covid era — is likely to support prices for good-quality used EVs, particularly those in the three-to-five-year bracket.
Industry analysts broadly agree that 2026 will be a year of stability rather than the dramatic falls seen in 2022–2024. For buyers, this means the current pricing environment may represent the best opportunity available, before supply tightens and prices begin to recover.
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, which translates directly into savings of 20–50% on the cost of the vehicle compared to a standard lease.
Combined with the current Benefit-in-Kind (BiK) rate of just 3% for electric vehicles in 2025/26, 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% — meaning 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 40% taxpayer, leasing for 36 months at 10,000 miles per annum, with maintenance and breakdown cover included.
Used Audi Q4 e-tron via The Electric Car Scheme:
Standard lease cost: £715/month
Income tax saving: -£286/month
National Insurance saving: -£14/month
BiK tax payable: ~£35/month
Net cost: approximately £480/month
Used Tesla Model 3 via The Electric Car Scheme:
Standard lease cost: £567/month
Net cost after salary sacrifice savings: approximately £383/month
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.
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. Many popular used models now offer 200+ miles of real-world range — more than enough for the average UK driver who travels around 20 miles per day. Read our guide to electric car range for more detail.
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 — at home, at work, or on public networks — saving a further 20–50% on charging expenses. For those without a driveway, our guide to charging without off-street parking covers your options in detail.
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.
Running Costs
Used EVs are significantly cheaper to run than petrol or diesel alternatives. Home charging typically costs around 15–20p per kWh on a standard tariff, and EVs require around half the maintenance of a comparable ICE vehicle — no oil changes, fewer brake replacements thanks to regenerative braking, and fewer moving parts overall. Our full cost of running an electric car guide breaks this down in detail.
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 eliminated. 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 — you simply 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' time.
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 — including early termination, non-payment, and vehicle damage scenarios — 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.
Frequently Asked Questions
Are used electric car prices still falling in 2026? Yes, but the rate of decline is slowing significantly. Average used EV prices fell around 7–9% year-on-year in 2025, but market analysts expect 2026 to be a year of stabilisation rather than further sharp declines — particularly as supply of three-to-five-year-old EVs begins to tighten due to Covid-era production shortfalls.
What is the average price of a used electric car in the UK in 2026? Average used EV prices are around £20,000–£24,000 depending on age and model, according to Autotrader and AA Cars data. Entry-level models like the Nissan Leaf and Renault Zoe are available for under £14,000 in the used market.
Can I salary sacrifice a used electric car? Yes. The Electric Car Scheme offers used electric car salary sacrifice, allowing employees to save 20–50% on a used EV through their pre-tax salary. Used stock is available on a first-come, first-served basis and can be delivered within 14 days of ordering.
What is the BiK rate for used electric cars on salary sacrifice? The BiK rate for all electric vehicles — new and used — is 3% for the 2025/26 tax year. This is the same rate regardless of whether the car is new or used, and it rises to 4% in 2026/27.
How quickly are used EVs selling in 2026? Very quickly. According to Autotrader data, used EVs are the fastest-selling fuel type in the UK, taking an average of 38 days to sell in January 2026 — three days faster than the overall market average.
Explore Used Electric Car Salary Sacrifice with The Electric Car Scheme
The used EV market has never offered more choice or more accessible pricing than it does right now. 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.
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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