The market is characterized by dynamic growth

The used market for electric vehicles is evolving rapidly: Five to six years ago, there were hardly any used cars available, but the high number of new cars registered in 2020 and 2021, especially in the fleet and leasing sectors, is now resulting in a substantially increased supply.

One reason for this is the typical use cycles of three to four years, so that these vehicles are now entering the used car market and causing a tangible change in the second-hand market for battery-electric cars. In the age bracket most buyers are interested in, used cars up to five years old, battery-electric vehicles already account for around ten percent of supply – a  proportion that is significantly higher than their share in the overall vehicle market.

In addition, the range of models has expanded considerably and now covers different vehicle classes, ranges and price segments. From compact city cars to powerful medium-sized models, there is a wide selection of suitable vehicles with robust ranges and good charging performance available to interested buyers.

Pricing structures are on a par with petrol and diesel cars

Pricing on the used market for electric vehicles follows differentiated patterns, as a detailed market analysis of listings on one of the leading online platforms clearly shows. An analysis by Fraunhofer ISI shows that used electric vehicles are largely priced at the same level as comparable vehicles with internal combustion engines. Sales prices of more than 30,000 battery vehicles on an online platform were collected and processed for the analysis. The evaluation was done as part of a master’s thesis and publication using descriptive statistics and regression analysis.

Well-equipped compact and medium-sized electric vehicles are typically listed between 20,000 and 40,000 euros. Their prices are therefore comparable to those for conventional vehicles. However, there are brand-specific differences. In the price segment below 30,000 euros, car models from sought-after manufacturers often have higher mileages of 80,000 kilometers and more.

At the lower end of the market segment, there are many smaller electric cars available for prices between 10,000 and 15,000 euros. This price range is making electric mobility accessible even to price-conscious buyers.

In this context, it is important to note that the prices for all new cars have risen considerably over the past ten years, regardless of drive system, a trend that is inevitably reflected in the prices for second-hand cars. 

Visualization of the market structure

The following analysis of the average listed prices for used battery-electric cars, carried out by researchers at Fraunhofer ISI, illustrates the market structure by vehicle model, mileage and availability.

The figure shows clear segmentation: Small cars and compact models with lower battery capacities (25-45 kWh) dominate the lower price segment, while premium vehicles with larger batteries (95-115 kWh) have higher prices, as expected. The high availability in the mid-price segment is striking, indicating a solid market. 

Typical residual values and trends

Residual value trends follow a characteristic pattern: Electric vehicles typically retain 80 to 95 percent of their original listed price in the first year. The greatest depreciation takes place within the first three years. After three years, the average residual value is around 50 to 70 percent of a vehicle’s new price; after five years, it stabilizes at around 40 to 45 percent. Older vehicles gradually reach a value of 30 to 35 percent of the original listed price.

Vehicle age is, therefore, by far the most important factor for pricing. In the first five years, used electric vehicles lose about 13 to 14 percent of their value per year on average. This depreciation is not linear; it is sharpest in the first few years and then gradually levels out. 

Higher mileage hardly affects the vehicle’s residual value 

How many kilometers are on the clock plays a role, but a much smaller one than is often assumed. Doubling the annual mileage only results in a price decrease of about two percent. Interestingly, the data show that electric vehicles with high mileages of more than 60,000 kilometers can still achieve stable residual values of about 50 percent, provided the car is not too old. This underlines that mileage in electric cars is less important than it is in conventional internal combustion engine vehicles, presumably due to the lower-maintenance drive technology.

Two other factors strongly influence the residual value: battery size and make. Enlarging a battery by ten kilowatt hours increases the sales price by about 14 percent, a considerable premium that reflects the high value attached to longer ranges in the used car market. There are also clear brand-specific differences: Especially sought-after manufacturers consistently achieve higher residual values than the average. In total, the combination of age, mileage, battery capacity and brand explains almost 70 percent of the price differences observed on the market. 

Battery technology: From uncertainty to reliability

The battery is still the main point of discussion when buying a used electric car. However, frequently expressed concerns regarding premature battery failure can be largely dispelled by current data. Modern traction batteries have a much longer lifespan than is often assumed.

Leading manufacturers offer standard warranties of eight years or 160,000 kilometers on batteries, guaranteeing at least 80 percent of their original capacity. These warranty terms provide a level of certainty comparable to that of internal combustion engines and cover potential early failures.

Real-world data also provide evidence for the moderate aging of battery systems. Capacity typically declines by only one to two percentage points per year. After five years of use, most vehicles still retain about 95 percent of their original range. Contrary to earlier fears, even frequent fast charging has a lower negative impact than had long been assumed.

To increase market transparency, traders are increasingly offering battery certificates that document the battery’s current state of health (SoH). Although the quality of these certificates varies, they help to boost buyer confidence. Given an active manufacturer’s warranty, a documented service history and positive reviews of the model series, buyers can usually count on the battery being in a reliable condition even without an additional certificate.

Conclusions and outlook

The used market for electric cars in Germany has largely completed its development phase and now presents itself as an established, liquid market segment. The combination of growing supply, transparent pricing structures and reliable battery technology creates favorable conditions for the further expansion of electric mobility. For potential buyers, today’s market offers a robust foundation for informed purchasing decisions. This development supports the transition to sustainable mobility.