Discounts drive down used electric car values
Used electric car values could be driven down in the coming weeks by substantial manufacturer discounts on new models.
According to data from used car data platform Indicata, manufacturers need to sell another 265,000 new electric vehicles to meet the ZEV Mandate target for 2026.
This is likely to lead to heavy discounts, which could have a negative impact on the average price of used electric car prices.
Its latest Market Watch report has revealed that used electric vehicles now account for 10% of all sales but make up just 7.5% of stock, with average values rising by two per cent since the summer.
Dean Merritt, Indicata national retail strategy manager, said: “The ZEV Mandate sets the share of new cars that must be electric and year-end discounts can work their way down the market and test the fragile recovery in used electric vehicle values.
“We don’t want to get to a stage where residual values foot the bill for the industry chasing the ZEV Mandate targets.”
He added: “The used market is delicately positioned as we move into the final few weeks of 2026. Following a quiet two weeks of trading over October half term, we expect the used market to pick up until closer to Christmas and its seasonal slowdown.”
