Falling prices f used EVs is giving a boost to the UK’s transition to electric vehicles.
But the transition” remains fragile” according to the to The AA’s latest EV Readiness Index
The AA said low residual values were putting pressure on fleets and 55% of potential buyers saying eVED is putting them off an EV.
The AA also warned that mixed messages from government policy and continued weakness in EV demand risk undermining the longer-term health of the market, particularly for fleets and manufacturers who underpin new EV sales.
While conditions improved during the quarter, the Index highlights a market that is still in transition rather than at mass adoption, with affordability improvements driven largely by falling used EV prices rather than stronger consumer demand.
The increase in the overall Readiness Rating was largely driven by falling prices in the used EV market, which have now dropped below the cost of equivalent petrol cars for the first time since the Index launched in September 2025.
“Used EVs were 10% cheaper than comparable internal combustion engine vehicles during the quarter.
The availability of lower-priced vehicles – particularly from ex-fleet supply entering the market – has created new opportunities for motorists considering switching to electric.
However, the AA cautions that rapid depreciation presents a significant challenge for fleets and manufacturers, which rely on strong residual values to support new vehicle sales and leasing models.
