Half of used dealers expect electric car prices and values to worsen

More than half of used car dealers believe electric vehicle (EV) prices and residual values could deteriorate further this year, according to new research from the Startline Used Car Tracker.

The latest tracker found that 52% of dealers expect electric car prices and values to decline further in 2026, reflecting concerns about an imbalance between supply and consumer demand in the used EV market.

Almost half (49%) of dealers said consumer demand for used electric cars is not rising quickly enough to support current values. Meanwhile, 42% believe there are still not enough advantages for consumers choosing an electric vehicle over traditional alternatives.

Dealers also highlighted the growing popularity of hybrid vehicles as a transitional option. Around 39% said more buyers are opting for hybrids as a stepping stone to fully electric cars.

Supply pressures are another concern, with 36% of respondents reporting that used electric car stock is increasing too quickly, while 24% said EVs remain too expensive at current prices.

However, the outlook is not entirely negative. According to the research, 11% of dealers believe electric cars are becoming more attractive to buyers, while 9% said current prices appear sustainable. Another 9% reported that enthusiasm for electrification is continuing to grow among consumers.

“Electric car prices and values are already generally below petrol equivalents but these findings show that the majority of dealers believe they have further still to fall,” he said.

“Supply of these vehicles is increasing quite quickly and while consumer enthusiasm is also increasing, there’s a widespread feeling among dealers that a negative imbalance exists which will further drive down prices and values.”

Burgess noted that while falling values may be challenging for new EV owners facing depreciation, they could create opportunities for used car buyers.

“This is bad news for anyone bearing the depreciation on a new electric car but good news for those buying a used one,” he said. “There are some very real bargains in the market at the moment and, if our research is correct, there could be even bigger ones as the year progresses.”

The survey also explored when dealers expect electric car prices and values to reach parity with petrol, diesel and hybrid vehicles. Around 41% said they expect alignment within one to two years, while 46% believe it will take between three and five years. A further 13% think it could take longer than five years.

Burgess added: “It’s clear dealers believe that electric car prices and values will start to stabilise, and many believe this will happen relatively quickly. However, they still largely foresee much more turbulence in the shorter term.”

Compiled monthly by APD Global Research, the Startline Used Car Tracker surveys both dealers and consumers on key trends in the used car market. The March edition questioned 301 consumers and 61 dealers.