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Used EV values hold up better than expected, depreciation gap narrows 80 percent

Used electric vehicles may be losing value less than the leasing and finance industries assume, an analysis showed. Data for 2025 used-car transactions in Germany, France, Italy and Spain put the depreciation gap between battery EVs and internal combustion cars at 12.9 percentage points. After adding variables omitted from previous calculations, the gap fell to 2.6 points. T&E said subsidies, taxes, inflation and vehicle configuration account for much of the difference, with new-EV price declines narrowing it further.