If you are considering making the switch to an electric car, this could be the best time in years to get a good deal if you’re buying second-hand.

Electric vehicle (EV) prices have been falling for three years, but they have just started to stabilise and, in some cases, are starting to creep up again.

Between August and October, average prices rose by more than £1,300 – a sharp shift following several months of steady decline, according to automotive pricing analyst Marketcheck UK.

For example, a three-year-old Tesla Model 3, which costs between £40,000 and £60,000 new, with 30,000 miles on the clock was valued at about £18,175 in the middle of August. 

The same car today costs an extra £1,200 or 6.7 per cent at £19,375.

Marc Palmer, from Autotrader, says the ‘dramatic period of price adjustment over the last few years is now firmly behind us’.

Alastair Campbell, of Marketcheck UK, adds: ‘This could mark a turning point for the used EV market. 

With demand remaining strong and supply tightening in some areas, price increases may become more common heading into 2026.’

EV prices are up more than those of any other type of car over the past three months, with prices increasing by 2.3 per cent compared with conventional hybrids at 1.9 per cent, and petrols and diesels at 0.9 per cent and 1.2 per cent respectively.

Experts are divided on how much more expensive second-hand EVs will get, but generally agree they are unlikely to get any cheaper.

Why are prices stabilising?

The dramatic fall in EV prices was triggered in October 2022 by a cocktail of factors. 

Sky-high energy prices made charging more expensive (and EVs less attractive as a result), an oversupply of EVs entered the used market, and Tesla cut prices on new vehicles.

Values continued to plummet as manufacturers discounted new models to meet binding targets set by the Government for the proportion of EVs that they sell. 

They faced an even greater battle as potential buyers baulked at the lacklustre expansion of the public charging network, and concerns about the range EVs could travel before needing a charge.

But the crash is now showing signs of flatlining. Appetite for second-hand EVs is growing as prices now compare much more favourably with used petrol cars and there is a wider choice of battery models with longer driving ranges between charges.

Autotrader says demand for used EVs rose by 30 per cent last month. Its data also shows that second-hand electric models sell within 24 days of being advertised – the average across all fuel types is 28 days.

Palmer says: ‘As affordability and choice becomes less of an issue, car buyers are embracing electric. 

'They’re also holding their value well and with potential annual running cost savings of up to £1,500 a year if you can charge at home, they’re a great option for many drivers.’

The average cost per mile to charge an EV using a domestic tariff is 5.88p per mile, the latest AA Recharge Report shows.

For those without off-road parking facilities, the cheapest option – using a public slow charger offering speeds of up to 8kW – is 11.3p per mile.

EVs are more expensive new – but cheaper second-hand

New electric cars are typically more expensive than equivalent petrol versions. But the value of EVs drops far more quickly. 

So, in some cases, the EV will be cheaper than the petrol version within just one year.

For example, in November 2024, a new 1.2-litre petrol-hybrid Vauxhall Corsa was priced at £26,010 compared to the Corsa Electric’s £31,175. 

Just a year later, the hybrid is now £15,450 while the electric is £12,750.

Battery life is improving

Fears over battery life is one of the reasons why the value of new EVs have plummeted so quickly. But the longevity of batteries has been improving, tests show.

ADAC, Germany’s AA, has for the last four years been using a Volkswagen ID.3, clocking 107,000 miles.  Yet the battery declined by just 9 per cent – an average of 2.25 per cent annually. 

But buyers will need to check the range of the vehicle they are considering to make sure it meets their own requirements.

What difference will today’s Budget make to values?

Rachel Reeves is expected to announce a consultation on the introduction of pay-per-mile ‘road pricing’ for EVs from 2028, which could see owners paying 3p per mile in taxation based on their annual mileage estimations.

Autotrader says this will increase the running costs of EVs and slow appetite in the used market.

However, when the Chancellor saw in vehicle excise duty changes in April that forced EV owners to pay road tax for the first time, used prices declined only marginally in response. 

Reeves could announce a rise in funding for the Government’s Electric Car Grant – providing discounts of up to £3,750 off the price of new electric models – along with more financial backing to expand the charging infrastructure and promises to review the cost of public charging. 

This could increase confidence in used EVs and offset the impact of pay-per-mile taxation.

Any rise in fuel duty in today’s Budget or later on, including axing the 5p-a-litre cut introduced in March 2022, could also make used EVs more appealing to drivers and push prices higher.

‘Whilst we don’t anticipate a sudden, significant spike in prices anytime soon, now is a very compelling time to make the switch to electric,’ Palmer adds.