“How bad is electric car depreciation?” “Electric vehicles take the podium spot for rapid depreciation.” So much negativity. Not enough analysis.

Our electric car depreciation calculator lets you forecast depreciation based on the average UK car depreciation levels over one to 10 years. It includes purchase price, vehicle type, battery size, annual mileage, years to own, market outlook, and it even includes battery concerns and 2030 ban effect checkboxes.

The good news: Your electric car isn’t going to be worth nowt. But you already know that. What you don’t know is it’s going to lose 40-50% of its value by year four in most cases. It’s unavoidable. Ways to slow it down include buying an SUV (always in demand), buying a premium brand (at a more expensive purchase price), and keeping your mileage as low as possible (where’s the fun in that!?). Anyway, the calculator’s below.

Last updated: November 2025

Electric Car Depreciation Study

We’ve conducted a study into electric car depreciation and found the results are within 6% of petrol vehicle depreciation, but on the negative side, meaning that if you buy an electric car in the same spec as petrol, the electric version will depreciate 6% more over three years.

It isn’t the result you’ll want as an electric car owner, but truth be told, it’s nowhere near as bad as the press is making out.

Check out the graph below for a research snapshot. In this case, we looked at Tesla Model 3 depreciation:

Now, let’s compare electric vs petrol car depreciation:

Also check out our other calculators:

• EV Charging Cost Calculator
• EV vs Petrol Cost Comparison Calculator
• EV Pay Per Mile Calculator
• EV Charging Time Calculator

Understanding Electric Car Depreciation in 2025

Electric car depreciation represents one aspect of EV ownership in the UK. While vehicles struggled with value retention, today’s market shows improvement in residual values. Our electric car depreciation calculator helps you understand patterns, providing estimates based on UK market trends.

The depreciation landscape for electric vehicles has changed since models like the Peugeot iOn and Citroën C-Zero faced value losses. Today’s electric cars benefit from technology, infrastructure, and consumer confidence.

How Fast Do Electric Cars Depreciate in the UK?

Electric vehicle depreciation follows a curve compared to petrol vehicles, with value loss occurring in the year of ownership. Front-loaded depreciation then moderates, with years showing value reduction to vehicles. However, patterns vary between manufacturers and models.

The depreciation rate for any vehicle depends on factors, but electric cars face considerations. Government policies, charging infrastructure availability, and battery technology influence how an EV loses value. The 2030 ban on petrol and diesel car sales adds another dimension to depreciation calculations, supporting electric vehicle values while combustion engine vehicles face questions about viability.

Electric car depreciation becomes complex due to the pace of change. As models offer ranges and charging capabilities, electric vehicles may depreciate compared to petrol cars, where advancement is gradual. Our calculator attempts to account for technology-driven depreciation factors.

Key Factors Affecting Electric Car Depreciation Rates

Battery Health and Warranty Coverage

The battery pack represents the factor in electric car depreciation. Unlike engines that can be rebuilt or replaced, EV battery packs are components with lifespans. Manufacturers offer battery warranties of around eight years, and the approaching end of the warranty period accelerates depreciation.

Battery degradation occurs through use, with factors like charging habits, climate, and driving patterns affecting the rate of capacity loss. Vehicles with battery health history and warranty coverage command prices in the used market. Conversely, electric cars approaching warranty expiration or showing signs of battery degradation face depreciation curves.

The cost of battery replacement, which can be relative to the vehicle’s value, creates uncertainty in the used market. Uncertainty affects electric vehicles or those without battery health documentation. Buyers request battery health certificates, making battery care and documentation as important as service records.

Brand Reputation and Market Perception

Brand strength influences electric car depreciation rates. Manufacturers with reputations for quality and innovation see value retention compared to budget or brands. Brand effect appears in the electric vehicle market compared to cars, reflecting buyer uncertainty about reliability and support.

Tesla’s brand identity and Supercharger network contribute to residual values for their models. Established brands like Porsche, Mercedes-Benz, and BMW have transferred their brand equity to electric models, supporting value retention. Conversely, entrants to the UK market face depreciation as buyers question support and parts availability.

Market perception of models affects depreciation. Electric vehicles that gained reputations for range or reliability issues continue to suffer residual values, while models known for reliability and range hold value. Online forums and owner groups influence perceptions, making reputation management for maintaining residual values.

Charging Infrastructure and Location

Geographic location impacts electric car depreciation across the UK. Areas with charging networks and clean air zones that favour electric vehicles see EV residual values. London, with its Congestion Charge exemption for electric vehicles and charging infrastructure, represents a market for used EVs.

Areas with charging infrastructure present depreciation dynamics. Electric vehicles in regions with charging networks may depreciate due to buyer demand. Geographic variation in depreciation didn’t exist to the extent with petrol vehicles, making location-specific calculations for valuations.

The pace of infrastructure development influences depreciation. Areas experiencing expansion of charging networks may see EV residual values, while regions with infrastructure development might experience depreciation. Connection between infrastructure and vehicle values creates a consideration for electric car owners.

Which Electric Cars Hold Their Value Best?

Premium Electric Vehicles and Value Retention

Electric vehicles demonstrate value retention compared to alternatives. Brands like Porsche, Tesla, and Mercedes-Benz benefit from brand equity, technology, and production volumes that help maintain demand in the used market. Vehicles attract buyers willing to pay premiums for quality and status.

The technology advantage of EVs contributes to their value retention. Features like over-the-air updates, driver assistance systems, and battery management systems help vehicles remain competitive. Additionally, brand buyers maintain vehicles, contributing to residual values through condition and service histories.

Electric SUVs benefit from demand, combining the SUV format with electric powertrains. Models like the BMW iX, Audi e-tron, and Mercedes EQC demonstrate how translating body styles to electric power can support residual values.

Mass-Market EVs with Residual Values

Not all value performers carry badges. Mass-market electric vehicles achieve value retention through advantages. Models like the Smart EQ range benefit from their suitability for city driving where electric vehicles excel and charging infrastructure is developed.

Vehicles from manufacturers with warranty packages and reputations for reliability show value retention. Hyundai and Kia’s warranties provide confidence to used buyers, supporting residual values. Models with reliability records develop reputations that help maintain demand in the used market.

The Volkswagen ID range demonstrates how manufacturers can leverage their reputation in the electric space. By positioning electric models as successors to combustion engine vehicles, Volkswagen has created familiarity that supports residual values. Approach of evolution rather than revolution appeals to buyers.

Calculating Your Electric Car’s Depreciation

Understanding Depreciation Patterns

Electric car depreciation follows patterns, though with variation compared to vehicles. Depreciation occurs after purchase, as the vehicle transitions from new to used status. Drop reflects factors including VAT that cannot be reclaimed by buyers and dealer margins.

Depreciation tends to follow a curve rather than a line, with the rate of value loss decreasing over time. However, events can accelerate depreciation, such as model launches, technology breakthroughs, or changes in government incentives. Our calculator attempts to model patterns based on trends and market conditions.

The depreciation curve for electric vehicles can show irregularities not seen in petrol cars. For example, the announcement of a replacement model might cause depreciation in models. Changes to government grants or tax incentives can create step changes in used values.

Mileage and Its Impact on Electric Car Values

Mileage affects electric vehicle values compared to cars. While wear from mileage concerns petrol car buyers, EV depreciation focuses on battery degradation from charging cycles. A mileage electric car charged at home might retain value compared to a mileage vehicle subjected to charging.

The type of miles driven matters for electric vehicles. Motorway miles at speeds are considered on batteries compared to stop-start driving with acceleration and regenerative braking cycles. However, electric vehicles benefit from their suitability for city driving, offsetting any battery degradation concerns.

Mileage above UK averages accelerates depreciation, though the impact varies by model. Electric vehicles with battery management systems show sensitivity to mileage, while others demonstrate depreciation curves with mileage. Documentation of driving and charging patterns can help maintain values for mileage vehicles.

Market Trends Shaping EV Depreciation

Government Policy Influence

The UK government’s commitment to ending sales of petrol and diesel cars by 2030 affects vehicle depreciation patterns. Policy creates demand certainty for electric vehicles while raising questions about petrol and diesel residual values as their end date approaches. Our calculator considers policy impacts when estimating values.

Clean air zones expanding across UK cities create depreciation considerations. Electric vehicles benefit from exemptions and incentives in zones, supporting their residual values. Conversely, vehicles face access restrictions that can accelerate depreciation. Zone expansions and policy changes represent variables in depreciation calculations.

Changes to vehicle taxation and company car benefits influence depreciation patterns. Electric vehicles benefit from tax treatment, supporting demand and residual values. Any changes to incentives could affect depreciation rates, making policy awareness for depreciation predictions.

Technology Evolution and Obsolescence

The pace of advancement in electric vehicles creates depreciation challenges. Unlike petrol cars where technology evolves, electric vehicles see improvements in range, charging speed, and features between generations. Advancement can accelerate depreciation of models as they become obsolete.

Battery technology improvements affect model values. As electric vehicles achieve ranges with charging, models with range may struggle to maintain value. However, effect varies depending on whether models meet requirements for use cases.

Software capabilities influence electric car values. Vehicles capable of receiving over-the-air updates maintain relevance compared to those with capabilities. Software-defined value represents a consideration in vehicle depreciation, with vehicles showing depreciation curves.

Minimising Electric Car Depreciation

Purchase Strategies

Minimising depreciation begins with purchase decisions. Buying electric vehicles allows buyers to avoid depreciation while retaining warranty benefits. Choosing models with brand reputations and reliability helps ensure value retention.

Specification choices impact values. Colours, options, and battery packs show value retention. Conversely, specifications or base models may struggle in the used market. Understanding which features maintain value helps optimise purchase decisions for depreciation.

Timing purchases around model cycles can affect depreciation. Buying before a model update results in depreciation, while purchasing in a model’s lifecycle may provide values. Awareness of manufacturer product plans helps inform purchase timing.

Maintenance and Care Practices

Maintenance impacts electric car depreciation. Maintaining service records, including battery health checks, helps preserve value. Following manufacturer guidelines for charging and battery care demonstrates ownership that appeals to buyers.

Condition remains for value retention. Protecting paintwork, maintaining interiors, and addressing any damage helps maintain values. The nature of electric vehicles makes interior condition important, as any squeaks or rattles become noticeable.

Documentation proves for maintaining electric car values. Keeping records of charging patterns, battery health reports, and any warranty work provides confidence to buyers. Home charging installation certificates and evidence of ownership command premiums in the used market.

Selling Decisions

Timing the sale of an electric vehicle requires balancing factors. Selling before warranty expiration, battery warranty, achieves values. However, selling means absorbing depreciation. Our calculator helps identify selling points for scenarios.

Market awareness helps maximise sale values. Understanding demand patterns, model launch timing, and policy changes helps identify selling windows. Electric vehicle values can be compared to cars, making market timing important.

Presentation matters when selling electric vehicles. Providing battery health documentation, demonstrating charging equipment, and explaining efficiency features helps achieve prices. Sellers who can address buyer concerns about electric vehicle ownership achieve values.

Conclusion: Navigating Electric Car Depreciation

Electric car depreciation in the UK presents challenges and opportunities for buyers and owners. While depreciation patterns differ from vehicles, understanding patterns enables decisions. Our electric car depreciation calculator provides estimates to help navigate the landscape.

The electric vehicle market continues maturing, with depreciation patterns stabilising as the technology becomes mainstream. Government support for electrification, expanding charging infrastructure, and battery technology trend toward supporting electric vehicle residual values. However, advancement and market uncertainty create depreciation variables.

Additional resources:

• Trends in electric car markets – Global EV Outlook 2025 – Analysis – IEA
• Electric Vehicle (EV) Data | UK Electric Vehicle Registration Statistics | SMMT
• Vehicles exempt from vehicle tax – GOV.UK
• Vehicle tax for electric, zero and low emission vehicles – GOV.UK
• Depreciation in the Electric Vehicle Transition: Sustainability of the Second-Hand Electric Vehicle Market (study)