‘Real blow’ to EV owners after major update today | Tech News

Electric vehicle (EV) costs have plunged by 37.5% over the previous 12 months, with financial specialists describing it as a “real blow for owners”. Britain’s most sought-after used electric and hybrid fashions have skilled dramatic price drops of up to 37.5% yearly, opening up alternatives for patrons contemplating the change, the most recent Used Car Index from AA Cars reveals.

New figures reveal that the three hottest absolutely electric autos have shed an average of a fifth of their worth. The Nissan Leaf skilled probably the most vital decline at 23.2%, with the Renault Zoe following at 22.1%, while the Tesla Model 3 witnessed its average price fall by 16.4%.

The average age of these three fashions during Q3 2025 stood at 4.6 years, marginally down from 4.8 years in Q3 2024. The Lexus RX (hybrid) registered the steepest average annual depreciation on the AA Cars platform, dropping by more than a third (37.5%) within 12 months.

James Hosking, managing director of AA Cars, stated: “The sharp decline in used EV prices over the past year signals a structural shift in the market. Vehicles that were once out of reach for many motorists are now entering a more affordable price bracket, widening access to electric motoring and accelerating second-hand adoption.

“We’re seeing a regular movement of early-generation EVs and hybrids coming onto the second-hand market as fleets and leasing corporations de-fleet. That increase in provide is giving patrons more alternative at more aggressive costs.

“Our latest Used Car Index shows that over the past year, the majority of leading electric and hybrid models have seen double-digit price declines. Part of this reflects the ageing of early EVs, but the scale of the drop is unusually steep.”

Price ‘collapse’

Scott Gallacher, a director at Leicester-based Rowley Turton, highlighted that there are some “real bargains” out there for these within the market for a new car.

He stated: “The collapse in the price of EVs has been a real blow for electric car owners. That said, they remain excellent cars – particularly attractive for company car drivers thanks to the low Benefit-in-Kind rates.

“For personal patrons, these price falls might current some actual bargains within the used market for these ready to make the leap. However, for anybody contemplating a new EV, leasing is perhaps the smarter option, the lease company takes depreciation risk. The EV market could also be unstable for now, however that does not change the direction of journey – electric is right here to keep.”

Financial experts hold differing views on EVs. Colette Mason, author and AI consultant at London-based Clever Clogs AI, explained her perspective on why the prices had fallen so drastically.

She continued: “This is what occurs when a new EV price battle collides with first-generation tech. Buyers are rationally pricing within the real-world ‘write-off’ risk of a failed battery, the questionable ethics of lithium sourcing and catastrophic fires. An 80-100-mile vary, typical of used cheaper fashions, is ineffective for long-distance drivers.

“My last 13-hour campervan trip to the Isle of Skye was on one tank of fuel. In an EV, it would be a logistical nightmare of planned charging stops, akin to running a military operation, because the equivalent EV range is just 120 miles. Many are watching the new sodium-ion batteries, which are already in mass production.

“Data from industry leaders exhibits these new cells are already round 65% cheaper to make, all whereas matching the vary of present lithium batteries, being more steady, and dealing completely in excessive cold. This collapse is not a ‘patrons’ market’. It’s the second the market stopped pretending the hype is actual and began pricing within the trouble.”

‘Numbers don’t add up’

Clive Bonny, managing director at Strategic Management Partners, argued the figures simply don’t stack up and it’s a “no-brainer” to opt for a petrol vehicle instead.

He added: “Ten years in the past I purchased a second-hand Mercedes A200 for £13,500. It is now valued at £11,800 with 35,000 miles. The two-litre engine provides 60 miles per gallon (MPG) and prices £20 every year highway tax plus £250 every year servicing.

“It’s good for another 20 years or more. EV’s have a 10-year life, create 300% more recycled waste due to battery and shorter lifespan, use electric grid fossil fuel, have shorter journey limits, run silent so are more hazardous to cyclists and road walkers, and lifetime costs five times more to run. It’s a no-brainer.”

Dr Marianne Trent, a scientific psychologist at Coventry-based Good Thinking Psychological Services, described the prospect of buying an EV as “chaos”.

She continued: “I don’t yet own an EV, but when I was recently given one as a courtesy car by my garage, I was pleasantly surprised. The responsiveness was like nothing else I’ve ever driven. But what puts me off is the amount of pre-planning charging takes and what would feel like the mental load of another battery to charge.

“This simply is not an problem for my petrol car. I at all times know I can nip into a storage for a three-minute fill-up and be good for a lot of hours of driving. I really feel like I am unable to commit to an EV till the time to charge is comparable to filling up with petrol or diesel. Managing a demanding car which wants fixed plug-ins seems like inviting some sort of chaos I simply do not need in my life for the time being.”

Saving ‘hundreds’

However, Marcus Wright, managing director at Bolton-based Bolton Business Finance, claimed that his EV was saving him hundreds of pounds on fuel each month.

He went on to say: “I’ve had a Tesla for the final 4 years as my company car and it’s my favorite car I’ve ever had. My spouse additionally has an electric Audi, so we’re a absolutely electric family and can seemingly by no means go back.

“We now spend around £40-£50 a month charging at home compared to over £250 on petrol. Depreciation is an issue with any new car, especially electric, but a Personal Contract Purchase (PCP) can protect you from this. I am looking forward to ordering the new Model Y Tesla in December.”

Benjamin Blyth, director at Daventry-based Houz Mortgages, additionally championed the trigger of EVs.

He said: “Yes, I’d buy another EV – what an opportunity at current prices. My Tesla Model 3 is one that has ‘dropped in value’ the most, apparently. That said, my iPhone is lower in value than it was when I bought it. So is the laptop I’m typing this on… Why are we so obsessed with depreciation when it’s so normal?

“I purchased used, so I benefited from that depreciation myself. I’ve saved £2,000 versus paying for petrol within the final 12 months. The car is quicker than something I’ve owned earlier than. A smoother experience. It’s ridiculously low upkeep and my charging is a fixed £30 per thirty days for limitless home charging thanks to Octopus.

“My Tesla has now ticked over 100k miles. Still looks new and achieves over 300 miles range on a full charge (a previous Mini Cooper S I owned did 350 miles on a full tank – so I’ve never had range anxiety). There are more charging points in the UK than petrol pumps. It is of course personal preference, but every anti-EV argument I’ve ever heard is out of the window.”