Used EV Values Rise as 3-5 Year Old Models Jump 10.2%
A reversal in depreciation trends for mid-age electric vehicles is lowering the total cost of ownership for fleet managers.
Residual values for electric vehicles (EVs) aged three to five years are trending upward, challenging long-held assumptions about the steep depreciation of early-generation electric transport. This shift suggests a stabilizing secondary market that could accelerate the transition to electric fleets.
According to Autotrader data reported by Fleet News, residual values for EVs in the 3-5 year age bracket have strengthened by 10.2%. This growth is supported by a broader increase in demand for electric vehicles, which has risen 13.9% year-on-year. These figures indicate a reversal of the deflationary pressures that weighed heavily on the used EV market throughout 2024 and into late 2025.
The Depreciation Struggle
Historically, electric vehicles have been plagued by high depreciation rates. This volatility was primarily driven by rapid advancements in battery technology, which often rendered older models obsolete, and persistent buyer anxiety regarding battery degradation. Because of these risks, fleet operators and leasing companies traditionally priced in significant losses for EVs at the conclusion of standard three-year lease cycles, creating a financial barrier to widespread adoption.
Impact on Fleet Economics
This upward trend in residual values significantly alters the financial calculus for both individual buyers and corporate fleet managers. By increasing the projected value of a vehicle at the end of its term, the total cost of ownership (TCO) is effectively reduced. For leasing companies, this reduces the risk associated with asset devaluation, potentially leading to more competitive lease rates and more flexible financing options for those switching from internal combustion engines.
Market Outlook
As affordability improves and the used market matures, the demand for entry-level electric transport is likely to remain a primary driver of value. Industry observers will now be watching to see if this recovery extends to other age brackets or if the growth is limited to the 3-5 year window. While the current data shows a positive reversal, the long-term stability of these values will depend on continued demand and the evolving secondary market for battery health certification.