Used EV Prices Dive as UK Market Flooded by Lease Returns
Used electric car prices in the UK are falling fast—by as much as 31% in some cases—as a wave of lease expirations collides with changing consumer demand. The data, released last week by Auto Trader, shows an average 12.8% year-on-year drop in used EV values, with hybrid models following closely behind.
The fall is being driven by a glut of ex-lease electric vehicles hitting the market. Popular models like the Nissan Leaf, Tesla Model 3, and Lexus RX Hybrid have seen some of the steepest declines. A two-year-old Model 3 Long Range that would have fetched over £30,000 last summer is now closer to £25,000—a loss of nearly £5,000 in just 12 months.
“Three-year lease cycles from the 2021 EV boom are now maturing,” said market analyst Nick Palmer. “It’s basic supply and demand. The used EV supply is ballooning, but demand hasn’t scaled in the same way.”
Further compounding the issue is buyer hesitation. Reports of poor residual values and battery degradation fears—often exaggerated—continue to make traditional petrol and diesel options seem safer, especially as their depreciation curves have flattened. Some popular ICE models have even appreciated slightly due to limited stock and continued demand.
The government’s recent EV grant confusion hasn’t helped matters either. Many buyers are now uncertain about long-term EV ownership costs, infrastructure rollout, and resale value—all contributing to market caution.
For savvy used-car buyers, however, this moment represents a rare window of opportunity. “If you’re ready to go electric, the used market is a buyer’s paradise,” said Palmer. “The cars are good, the tech is mature, and prices are unusually low.”
Dealerships, meanwhile, are under pressure to shift stock quickly. Some are bundling warranty extensions, free servicing, or home charger installation just to get hesitant buyers over the line.
Long-term, analysts expect EV depreciation to stabilise once the second-hand market matures and battery health tracking becomes more transparent. But in the short term, the sheer volume of lease returns means values could drop further—particularly for lower-range or less desirable models.