What Is The Situation With Residual Values In Europe?

Electric cars in Europe hold their value better than used-car pricing guides suggest, according to a new analysis from Transport & Environment. On paper, battery electric vehicles (BEVs) seemed to lose 12.9 percentage points more of their value than gas-powered cars by 2025. But once researchers adjusted for inflation, purchase subsidies, and the fact that new EV prices have been falling fast, that gap shrank to just 2.6 percentage points. Much of the apparent "EV depreciation problem" turns out to be a side effect of EVs getting cheaper to buy new, not a sign that nobody wants used ones.

The report also found EV values are stabilizing. Price drops that hit used EVs hard in 2024 have slowed sharply in 2025, and EVs are now holding steady better than gas cars in some respects. Results vary by country and vehicle: Spain's EV values are steady, Italy's have dropped more, and smaller, European-brand EVs tend to hold value better than larger ones.

This is industry-level news out of Europe, not a U.S. program change, so it doesn't open up a new rebate or deadline for American homeowners. But if you're weighing whether to buy or lease an electric vehicle alongside other home energy upgrades like solar or a heat pump, it's a data point worth knowing: fears about EVs cratering in resale value appear overstated, and the used EV market looks more stable than the headlines imply.