At first glance, the numbers* look impressive: in the United States, sales of used EVs jumped 63 percent in 2024 compared with the previous year. In the United Kingdom, sales rose by 57 percent. And in China—the world’s largest EV market overall—sales of pre-owned electric cars have been growing by more than 30 percent annually.
Yet compared to the conventional used-car market, EVs remain a niche business. Supply is rising sharply as more new electric cars enter the roads each year and many owners are now replacing them with newer models. But demand for second-hand EVs is lagging. Sellers often have to set lower prices and wait months before finding a buyer. At present, depreciation on used EVs is much steeper than on comparable combustion models—hurting dealers, leasing companies, and private sellers alike. In Germany, for instance, the insurer Allianz calculates that after three years, EVs lose between 48 and 57 percent of their value, compared with just 39 percent for conventional cars.
There are several reasons for this steep drop in value: rapid advances in battery technology, range, and charging speeds quickly make older models less attractive. The phase-out of government subsidies has dampened demand. On top of that, many manufacturers have cut prices for new EVs, further pushing down resale values. And buyers are unsure about the state of the battery and its remaining range when it comes to pre-owned models. All of this fuels hesitation.
Car dealers, at least, can help remove one big source of doubt: by offering a reliable battery certificate from an independent assessor. TÜV SÜD currently provides this service for business clients such as dealers and leasing companies in Germany and Sweden, with Spain, Romania, and other countries set to follow.
“The battery check is carried out on site with a mobile testing unit,” explains Ingmar Schüller, Product Owner Digitalisation in the Mobility division at TÜV SÜD.
It takes just three minutes to read out the battery data. It even reveals details of the vehicle’s previous driving and charging behavior. “If the car was mostly driven on short routes with low battery strain and recharged slowly at a wallbox, the wear on the battery is low,” says Schüller. “It’s a different story if the driver was often travelling at high speeds on the motorway or using fast charging. Repeated high-load charging cycles put stress on the battery.” These factors are included in the assessment. The overall result is expressed as the ‘State of Health’ (SoH), displayed in percent. A battery in perfect condition will score 100 percent.
“But the SoH still has its limits,” Schüller points out. “The figure is based on data supplied by the vehicle itself. What we need is a standardized measure that works across all brands and models, allowing objective comparisons. TÜV SÜD is actively involved in the committees working to define such a standard.”
Schüller is convinced: “Battery certificates will become mandatory in the used-EV market. Buyers will demand them.”
Still, depreciation will remain a challenge. Each time a new wave of leasing returns hits the market, supply jumps, demand lags—and prices fall. That puts particular pressure on the young and volatile used-EV segment, where the share of leased vehicles is above average.
Even so, battery certificates can play a major role in stabilizing the market by strengthening trust in the condition of used EVs. On top of that, dealers and manufacturers can take further steps to support resale values. Extended warranties give buyers financial security. Refurbishment programs and regular software updates keep older EVs technologically up-to-date. And the better a seller can document a vehicle’s care and maintenance, the higher its resale price will be—just as with combustion cars.
*Sources: marketcheck.com, The Society of Motor Manufacturers & Traders, Krungsri Research
