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A stark warning has been sounded for electric vehicle owners as they face a significant financial blow, with their cars reportedly losing over half their value within the first two years of

ownership, according to a Cox Automotive study. In a concerning trend, the average electric vehicle will retain only 49 per cent of its initial value after 24 months, a substantial decrease

from the 83 per cent retention rate recorded in 2022. This slump is made more striking by the fact that their diesel and petrol-powered counterparts generally retain 70 per cent of their

value, a notable 20 per cent more than electric vehicles. Cox Automotive Europe's Philip Nothard told the Telegraph that electric vehicle prices reached their peak in 2022, largely due

to the strain the Covid pandemic placed on global supply chains. Nothard elaborated: "The current performance of nearly-new EVs in the used market is still much lower than we would

anticipate for vehicles in this age profile. The heavy discounts offered on new vehicles mean that consumers can pick up a brand-new model for the same price as a nearly-new model." He

further highlighted that this development gives consumers minimal incentive to consider purchasing nearly-new electric vehicles, dealing a blow to a market already in need of incentives,

reports Birmingham Live. However, Nothard pointed out that "middle-aged" electric vehicles, those between three to five years old, have held their value significantly better in

recent years, experiencing only a 15 per cent drop in resale price. A staggering £4 billion was wiped off the price tags of new electric vehicles (EVs) last year, with an average discount of

£11,000 per vehicle, according to the Society of Motor Manufacturers and Traders. This drastic depreciation has led to significant losses for companies reselling EVs, with the British

Vehicle Rental and Leasing Association (BVRLA) warning of an "unsustainable" trend. Industry insiders are attributing the sharp decline in second-hand EV prices to the

government's "zero emission vehicle mandate", which has created a surge in supply and subsequently driven down values.