Europe's second-hand car market is experiencing a shift. While used petrol and diesel vehicles continue to face pressure on resale values, battery-electric vehicles (BEVs) are showing signs of greater resilience.

Market data from July 2026 indicates that electric cars are attracting stronger demand and spending less time at dealerships. However, their resale values remain lower than those of other vehicle types, highlighting the challenges still facing the industry.

Why Used-Car Values Are Falling

European used-car prices are gradually returning to more typical levels following the unusually high valuations recorded during the pandemic.

Improving vehicle availability has increased competition, putting downward pressure on prices.

Italy experienced the sharpest annual decline in July, with the average proportion of a vehicle's original price retained after three years falling by 3.5 percentage points.

The United Kingdom also recorded a significant decrease, while Germany's average retention rate fell by 2.3 percentage points.

Spain performed comparatively well because demand grew faster than supply. Switzerland recorded the smallest annual decline but continued to have the lowest overall value-retention rate among the countries examined.

Electric Vehicles Show Greater Resilience

Despite declining values across the wider market, electric vehicles performed better than national averages in most European countries.

In Germany, three-year-old electric cars with approximately 60,000 kilometres on the clock retained 0.5 percentage points more of their original value than in July 2025.

Austria recorded the same improvement, even as its overall market declined.

Italy also showed signs of stabilisation. Electric vehicles continued to depreciate, but their annual decline was smaller than the national average.

Nevertheless, electric cars retained a lower proportion of their original purchase price than any other powertrain category in every market studied.

Used Electric Cars Are Selling Faster

Growing demand is helping second-hand electric vehicles spend less time at dealerships.

In Austria, France, Germany, Spain, Switzerland and the UK, fully electric cars were the fastest-selling powertrain category in July.

Germany recorded particularly strong results for several electric models. The Tesla Model Y sold in an average of 19.2 days, followed by the Volkswagen ID.4 at 32.4 days and ID.3 at 35.7 days.

Spain also experienced a substantial improvement. The average selling time for electric vehicles fell to 69.2 days, almost 17 days faster than the previous month.

Quicker sales benefit dealerships by reducing storage expenses and limiting the need for additional price reductions.

Where Electric Cars Lose The Most Value

Resale performance varies considerably across European markets.

In France, three-year-old electric vehicles retained an average of 34.8% of their original list price, compared with 50% for the wider market.

Austria's electric cars retained 40.2%, while Switzerland recorded 36.3%.

These differences reflect variations in consumer demand, vehicle availability and competition from newer models.

Rapid improvements in battery technology and driving range also influence resale prices, as older electric cars compete with increasingly capable alternatives.

What This Means For Buyers

The improving performance of used electric vehicles suggests that demand is strengthening, although depreciation remains a concern. For buyers, lower resale values can create opportunities to purchase relatively recent electric cars at more affordable prices.

Battery condition, remaining warranty coverage, charging compatibility and realistic driving range should remain important considerations.

As Europe's used-car market continues to adjust, electric vehicles could become increasingly attractive to budget-conscious motorists, particularly if demand remains strong and prices become more competitive.