Used Electric Vehicle Prices Decline Sharply Amid Chinese Market Expansion

The British used electric vehicle market has experienced a substantial correction, with average prices falling by £14,000 over a three-year period. Second-hand electric vehicles now trade at approximately £25,000, compared with £39,000 three years earlier, according to data from automotive retailer Cazoo. Market analysts project further declines to the £20,000 threshold within the next twelve months.

The price compression reflects two concurrent market developments. Chinese manufacturers have substantially increased their export volumes, with November data from China Customs showing an 87 per cent year-on-year increase in global electric vehicle exports, approaching 200,000 units. European shipments rose by nearly two-thirds to 43,000 vehicles during the same period. This supply influx has coincided with changing consumer attitudes in the British market, where traditional brand preferences have diminished significantly.

Cazoo research indicates that six in ten British consumers now express willingness to purchase Chinese electric vehicles over established marques. This shift occurs despite notably low brand recognition, with only 40 per cent of respondents familiar with BYD, the sector’s leading Chinese manufacturer. Awareness of Jaecoo, which operates 90 dealerships across Britain, registers at merely 12 per cent.

Lucy Tugby from Cazoo suggests that early adopters of Chinese electric vehicles from two years ago are beginning to upgrade, creating a nascent secondary market for these brands. The company anticipates that Chinese manufacturers will capture increasing market share in both primary and secondary segments as their British operations expand. Consumer behaviour analysis suggests younger drivers prioritise technological capabilities over brand heritage, creating receptivity to cost-competitive alternatives.

Electric vehicles currently represent approximately 20 per cent of new car sales in Britain, yet constitute fewer than 5 per cent of the total vehicle fleet. Market participants view 2026 as potentially transformative, as used electric vehicle pricing converges with traditional combustion engine vehicles. Used petrol cars averaged £16,356 last month, declining by only £800 over three years. The pricing differential between second-hand electric and petrol vehicles has contracted to 44 per cent, compared with double the cost two years prior.

Supply dynamics have shifted markedly, with electric vehicle listings on secondary market platforms increasing by 50 per cent year-on-year. Infrastructure improvements from established manufacturers, particularly Tesla, have enhanced vehicle availability in the used market. Cazoo notes that whilst prices should continue declining toward £20,000, the rate of decrease may moderate as the market matures.

Regulatory developments present additional considerations for market participants. The autumn Budget introduced a mileage-based taxation structure for electric vehicles, effective from 2028, which may influence ownership economics. This policy shift compounds existing depreciation concerns that have characterised electric vehicle ownership.

The accelerated depreciation of electric vehicles presents particular challenges for new vehicle purchasers, who face substantial value erosion immediately post-purchase. This phenomenon stems primarily from market uncertainty regarding battery replacement costs in aging vehicles. As production costs for new electric vehicles decline and Chinese manufacturers expand market presence, early adopters confront significant residual value risks that exceed depreciation patterns observed in conventional vehicles.

The convergence of increased Chinese production capacity, evolving consumer preferences, and expanding secondary market supply suggests sustained downward pressure on used electric vehicle pricing. Market participants must evaluate these dynamics within the context of regulatory changes and technological advancement timelines when assessing investment and ownership decisions in this segment.