If you’ve been holding off on buying an electric vehicle (EV) because of the price, now might be your moment.
According to the latest AA Used Car Index, used EV prices have dropped significantly over the past year – by as much as 31% in some cases. Almost every popular electric and hybrid model listed on the platform has seen double-digit price falls in the second quarter of 2025.
What’s Behind the Price Drop?
The biggest price plunge was recorded by the Lexus RX (hybrid), which saw its value fall by a staggering 31%. The Renault Zoe and Nissan Leaf also dropped in value by 21% and 20% respectively. On average, the most searched-for EVs and hybrids are now 12.8% cheaper year-on-year.
So why the sudden drop?
The second-hand EV market is expanding rapidly. As more ex-lease and ex-fleet vehicles hit the market, supply is increasing and prices are responding accordingly.
Affordable EVs Now Within Reach
This shift is opening up access to previously high-end EVs. For example, the Tesla Model 3 has lost over £4,400 in value over the past 12 months, making it a more realistic option for many buyers.
AA Cars reports that this growing affordability is already changing consumer habits. There’s been a record number of EV searches on their platform, and more drivers are seriously considering making the switch to electric or hybrid vehicles.
What About Petrol and Diesel Cars?
While EV prices are dropping, it’s a mixed bag for petrol and diesel vehicles.
Some models, like the Volkswagen Polo (hybrid), have actually increased in value — up 9.4% year-on-year and 3.8% over the last quarter. The Vauxhall Corsa, currently the UK’s most searched-for used petrol or diesel car, also saw a 7% annual price rise.
However, not all petrol and diesel models are holding steady. The Ford Fiesta lost 11.7% of its value over the past year, the Ford Focus dropped by 6.6%, and the Ford Kuga (hybrid) declined by nearly 6% in just the last three months.
In general, prices for petrol and diesel vehicles have remained relatively flat, with an average 1.1% year-on-year increase.
Expert Insight: A Turning Point for EVs?
James Hosking, Director at AA Cars, called the current trend a “genuine turning point” for drivers who were previously priced out of electric motoring.
“Used EV prices have fallen off a cliff in the past year,” he said. “That kind of price movement is bringing greener vehicles within reach of thousands more households.”
However, Hosking also highlighted ongoing concerns that may still be holding some buyers back — such as charging infrastructure, battery range, and long-term running costs.
He added:
“The used market is a mirror to consumer confidence. The drop in EV prices will help accelerate the shift to zero-emission motoring, but turning this short-term trend into long-term behaviour change will require continued investment, strong policies, and attractive finance options.”
Bottom Line: Is It Time to Go Electric?
If you’ve been considering an EV, now could be the perfect time to start looking. With more used models available and prices dropping fast, electric vehicles are becoming a more realistic and appealing option for UK drivers.
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