Calculate how much your electric car has lost in value and project its future worth. Compare EV models by depreciation rate, estimate company car BIK savings and total ownership costs — updated with April 2026 VED charges, 4% BIK rate and 2026 used EV market data.
The answer in 2026 is: it depends on the model — but the gap between EV and petrol depreciation is narrowing fast.
Electric car depreciation in the UK has been one of the most closely watched topics in the used car market since 2022. Early EV models — particularly budget examples like the Renault Zoe and first-generation Nissan Leaf — depreciated significantly faster than equivalent petrol cars, driven by rapid technology advances, range anxiety and battery degradation concerns. Some newer EVs experienced first-year depreciation of up to 50% in 2023–2024, creating extraordinary buying opportunities in the used market while causing significant paper losses for new buyers.
In 2026, the picture is more nuanced. Data from Cox Automotive and Cap HPI shows average EV depreciation sitting at 38–42% after three years — compared to 35–40% for equivalent petrol vehicles. The gap has narrowed considerably, and for the best-retained EV models — particularly Tesla Model 3, Porsche Taycan and BMW iX — residual values are now broadly comparable to premium petrol equivalents. However, used EV prices are still falling year-on-year (~10% in early 2026) as large volumes of ex-fleet and salary sacrifice EVs return to the used market, keeping downward pressure on values across most segments.
April 2026 brought a significant change: EVs are now subject to VED (road tax) for the first time, ending their previous exemption. New EVs pay £10 in year one and £200/yr from year two — the same standard rate as petrol and diesel cars. EVs over £40,000 list price also attract the £425/yr expensive car supplement for years two through six. Combined with rising BIK rates (4% for 2026/27, rising to 7% by 2027/28), these changes are beginning to moderate the total cost advantage of EVs vs petrols — making the full depreciation and TCO comparison more important than ever. Use the EV vs Petrol TCO tab and Company Car BIK Tool below.
Four tools: future value estimator, past depreciation calculator, EV vs petrol TCO comparison and company car BIK tax tool — all updated with 2026/27 rates.
Project how much your electric car will be worth in future years based on its model category, mileage pattern and battery condition. Rates reflect 2026 UK used EV market data.
Calculate how much your electric car has already depreciated since new — including implied annual rate, cost per mile and comparison against the UK EV average.
Compare the total cost of owning an electric car vs an equivalent petrol — including depreciation, fuel/charging, VED (£200/yr from April 2026), insurance and servicing. EV VED: £10 yr1 then £200/yr + £425/yr if over £40k list price.
Calculate your annual company car BIK tax for an EV vs an equivalent petrol — using 2026/27 HMRC rates. EV BIK rises from 3% (2025/26) to 4% for 2026/27, while petrol company cars attract 25–37% BIK depending on CO₂.
Estimated annual depreciation rates and 3-year residual values for the most popular EV models in the 2026 UK used car market.
| EV Model | Annual Dep. Rate | Value After 3 Years | BIK Rate 2026/27 | Key Residual Driver |
|---|---|---|---|---|
| Tesla Model 3 / Model Y | ~12% | ~71% of new price | 4% | Strong brand, software updates, Supercharger network |
| Porsche Taycan | ~13% | ~66% of new price | 4% | Premium brand, performance, desirability |
| BMW iX / i4 / i5 | ~14% | ~63% of new price | 4% | Premium brand appeal, solid used demand |
| Kia EV6 / EV9 | ~15% | ~61% of new price | 4% | Strong range, warranty, good brand perception |
| Hyundai Ioniq 5 / Ioniq 6 | ~16% | ~59% of new price | 4% | Fast charging, range, rising brand trust |
| Volkswagen ID.3 / ID.4 | ~18% | ~55% of new price | 4% | High volumes weigh on values; brand offset by market |
| Ford Mustang Mach-E | ~21% | ~50% of new price | 4% | Strong first year drop; improves with age |
| Polestar 2 | ~22% | ~48% of new price | 4% | High supply, niche brand limits demand |
| Audi e-tron / Q8 e-tron | ~23% | ~47% of new price | 4% | Premium offset by high fleet supply |
| Nissan Leaf (newer gen) | ~24% | ~44% of new price | 4% | Ageing platform, CHAdeMO charging concern |
| MG ZS EV / MG4 | ~25% | ~42% of new price | 4% | Budget pricing, brand perception, high supply |
| Renault Zoe / Nissan Leaf (older) | ~30–35% | ~30–35% of new price | 4% | Ageing tech, battery range decline, limited charging |
* Estimates based on 2025/26 UK used EV market data (Cox Automotive, Cap HPI, Motorway). Actual values vary by specification, condition, mileage and market conditions. Used EV prices remain volatile — verify current values on Auto Trader, Motorway or What Car before any purchase or sale decision.
Essential benchmarks, tax rates and cost figures for EV buyers, company car drivers and fleet managers in 2026.
EV BIK rises to 4% for 2026/27 (up from 3%). Still massively lower than petrol at 25–37%. A higher-rate taxpayer in a £45,000 EV saves over £4,000/yr in BIK vs an equivalent petrol.
EVs no longer exempt from VED from April 2026. New EVs pay £10 in year one, then £200/yr standard rate. Expensive car supplement: £425/yr for list price over £40,000.
Average UK EV depreciates at ~20% per year — slightly higher than the average petrol car (~18%). Best EVs (Tesla, BMW iX) now achieve 12–14%/yr, comparable to premium petrol.
Average EV retains 38–62% of new price after 3 years depending on model. Tesla Model 3 retains ~71%; Renault Zoe retains as little as 30%. Used EV prices fell ~10% year-on-year in early 2026.
100% First Year Allowance for new zero-emission company cars extended to 31 March 2027. A £45,000 EV saves £11,250 in Corporation Tax in year one at 25% CT rate.
EV BIK is set to rise year-on-year: 4% (2026/27) → 5% (2027/28) → 7% (2028/29) → 9% (2029/30). Still far below petrol BIK — but company car drivers should factor rising rates into multi-year cost modelling.
Four tools for four different EV ownership decisions — choose the right one for your situation.
Use this if you own an EV and want to project its value in 1, 3 or 5 years — for budgeting, PCP settlement planning or deciding when to sell. Battery health adjustment is critical for older EVs — enter honestly for the most accurate result.
Use this if you want to understand how much your EV has already lost and how it compares to the UK EV average for its segment. The implied annual rate vs UK benchmark comparison helps you assess whether your car is holding value better or worse than expected.
Use this to decide between buying an EV or an equivalent petrol — entering real charging costs based on your home / public charging mix. The April 2026 VED change means EVs are no longer tax-exempt, which narrows (but rarely eliminates) the running cost advantage.
Use this if you drive a company car and are comparing an EV against a petrol alternative. The BIK saving alone — typically £3,000–£6,000/yr for a higher-rate taxpayer — often more than offsets any depreciation difference, making the EV cheaper on total cost despite higher list price.
Three tiers of EV depreciation performance — and what drives residual values in each segment.
Further resources for UK electric car buyers, company car drivers and fleet managers in 2026.
Common questions about EV depreciation, residual values, VED and BIK for UK buyers and company car drivers in 2026.