Used electric cars go mainstream: prices fall, supply grows rapidly

Supply explosion due to fleet vehicles

In the age group up to five years, battery-electric passenger cars now account for around ten percent of the used car market. Well-equipped compact and mid-size models typically cost between 20,000 and 40,000 euros.

Smaller used electric cars are already available from 10,000 to 15,000 euros. Compact models with batteries between 25 and 45 kWh dominate this price segment.

Volume models with battery capacities between 40 and 70 kWh characterize the market and often come from former company and leasing fleets. For particularly sought-after brands, vehicles under 30,000 euros often show mileages of 80,000 kilometers or more.

Premium vehicles such as the Mercedes EQS with large batteries of 95 to 115 kWh, on the other hand, are offered in significantly smaller numbers on the used market. Electric vans and seven-seaters appear only sporadically.

Prices at combustion engine level

A key finding of the ISI analysis of over 30,000 online advertisements: used electric cars are largely priced at the level of comparable combustion engine vehicles. "Today, there is a growing supply, transparent prices, and reliable quality standards," says Plötz.

Residual values are developing predictably. In the first year, electric vehicles typically retain 80 to 95 percent of their original list price. After three years, the average residual value is 50 to 70 percent of the new price, and after five years, it stabilizes at around 40 to 45 percent.

Mileage plays a smaller role in pricing than with combustion engine vehicles. Doubling the annual mileage only leads to a price decrease of about two percent. This underscores that mileage plays a lesser role for electric vehicles than for combustion engine vehicles, presumably due to the lower-maintenance drive technology.

Battery size also has an impact: a battery that is ten kilowatt-hours larger increases the selling price by about 14 percent.

Battery: More durable than expected

Regarding battery aging, Plötz reassures. "The frequently expressed concerns about the battery can be largely dispelled by current data," he says. Modern battery systems are significantly more durable and reliable than long assumed. Capacity typically decreases by only one to two percentage points per year. After five years of use, most vehicles still have about 95 percent of their original range.

Contrary to earlier fears, even frequent fast charging has a less negative impact than long assumed. Modern traction batteries typically last significantly longer than the vehicle itself under normal use, and most manufacturers offer correspondingly long warranties on their battery storage.

Climate balance and second life

Over their entire life cycle, a medium-sized electric car causes around 40 to 50 percent fewer greenhouse gas emissions than a comparable combustion engine vehicle, according to ISI calculations. Second-life use as stationary storage and subsequent recycling can reduce the ecological footprint of a battery by 35 to 80 percent.

The EU Battery Regulation (EU) 2023/1542 also creates regulatory planning certainty for the collection and recycling of used batteries. Plötz's conclusion is clear: "Used electric cars make the transition affordable – with plenty of choice, predictable prices, and less uncertainty."