Second-Hand EVs Retain Their Value Better Than Industry Claims — New Study

Used electric cars may be worth more than the industry lets on. A new analysis from the group Transport & Environment looked at how leasing companies calculate the value that electric vehicles lose over time compared to gas and diesel cars. Standard industry figures, based on 2025 used-car sales in Germany, France, Italy, and Spain, showed EVs losing nearly 13 percentage points more value than combustion cars. But the analysis found this comparison leaves out several factors: it doesn't account for subsidies that lower EV sticker prices, taxes that raise gas car prices, inflation, and the fact that the gas-car fleet is older and has more miles on it. Once those are factored in, the real gap shrinks to about 2.6 percentage points, and falling prices on new EVs explain most of the rest.

This matters for anyone considering leasing or buying an electric car, since these depreciation estimates shape lease payments and financing costs. If EVs actually hold their value close to gas cars, some current pricing may be overstating the risk of buying or leasing electric. The analysis also points to a practical detail worth knowing: EVs sold with battery health certificates, which document the condition of the battery, tend to resell faster and for more money.

Separately, demand for used EVs appears to be climbing. In Ireland, used EV values rose faster than gas and diesel cars over the past year, and in Germany, used EV sales jumped 64 percent in the first seven months of the year. This is European data, but it's a signal worth watching if you're weighing a used EV purchase here.