October 29, 2025 by Siobhan Doyle
The AA says there should be more incentives for buying used electric cars, and with charging costs staying steady, drivers can save a lot by charging at the right times.
The AA is urging the Chancellor to consider incentives for used EVs in the upcoming Budget on 27 November. Such measures could make second-hand electric cars more affordable and give drivers an extra reason to switch to electric.
In a new report, the AA argues that the UK’s used electric car market could use a boost. While charging prices remain frozen, the motoring group says more needs to be done to support buyers of second-hand EVs.
“While the grant on new electric cars is welcome, the majority of private car sales take place in the used market,” said Jack Cousens, head of roads policy at The AA. “Those looking to buy are wowed by the tech EVs offer and, with the right incentive, could make drivers think twice before choosing their new wheels.”
Cousens adds that using the Budget to announce a used car grant, or discounting VAT on used sales, “would help invigorate used EV sales.”
Remember, you can buy a brand new or used car right here on Carwow. And you can sell your car, too. We’re here to help you through every step of your car-changing journey.
But why does the used EV marker matter? New research shows that around 90% of private car sales in 2024 were used vehicles, meaning most buyers miss out on the official EV grant scheme. The AA is now calling for incentives, such as grants, interest-free loans, or VAT relief, to help make used electric cars more accessible to everyone.
When it comes to cost, buying a used EV is surprisingly close to the price of a petrol car. A new electric car is typically 27% more expensive than its petrol equivalent, whereas a used EV costs just 3% more than a used petrol model. While this is great news for private buyers, fleet and leasing companies are feeling the pinch from high depreciation. Without action, the AA warns, the used EV market could face serious challenges.
“Fleet and leasing companies are currently propping up the sector with a solid turnover of cars, but this can’t continue much longer,” said Cousens. “The depreciation levels on used EVs is reaching a tipping point where some form of used electric car incentive is needed to help shoulder some of the burden.”
Drivers already enjoy stable charging prices, with costs unchanged since August. Off-peak ultra-rapid charging can cost as little as 50p per kWh, allowing an 80% charge for around £20. That’s roughly half the price of filling a petrol tank.
There’s also home charging, which can cost electric car owners as little as 7p per kWh to charge up overnight. For drivers, this means smarter charging can save money without impacting daily routines.
But what could this mean for drivers? If the government introduces incentives for used electric cars, buying one could soon be more affordable. And with charging costs staying steady, drivers can plan their journeys without worrying about sudden price spikes.
In short, a little government support could make used EVs more accessible, save drivers money, and help the UK move closer to its net-zero goals, all at the same time.
Looking for a new set of wheels? With Carwow you can sell your car quickly and for a fair price – as well as find great offers on your next one. Whether you’re looking to buy a car brand new, are after something used or you want to explore car leasing options, Carwow is your one stop shop for new car deals.
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* Please contact the dealer for a personalised quote, including terms and conditions. Quote is subject to dealer requirements, including status and availability. Illustrations are based on personal contract hire, 9 month upfront fee, 48 month term, 8000 miles annually, inc VAT, excluding fees. Vehicle returned at term end.
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Average savings are calculated daily based on the best dealer prices on Carwow vs manufacturer RRP. Where it is shown that the EV Grant is included, this refers to the Government grant awarded to manufacturers on certain EV models and derivatives, the amount awarded under the EV Grant is included in the Savings stated and applied at the point of sale. Carwow is the trading name of Carwow Ltd, which is authorised and regulated by the Financial Conduct Authority for credit broking and insurance distribution activities (firm reference number: 767155). Carwow Leasey Limited is an appointed representative of ITC Compliance Limited which is authorised and regulated by the Financial Conduct Authority for credit broking (firm reference number: 313486) Carwow and Carwow Leasey Limited are each credit brokers and not a lenders. Carwow and Carwow Leasey Limited may receive a fee from retailers advertising finance and may receive a commission from partners (including dealers) for introducing customers. All finance offers and monthly payments shown are subject to application and status. Carwow is covered by the Financial Ombudsman Service (please see www.financial-ombudsman.org.uk for more information). Carwow Ltd is registered in England (company number 07103079), registered office 2nd Floor, Verde Building, 10 Bressenden Place, London, England, SW1E 5DH. Carwow Leasey Limited is registered in England (company number 13601174), registered office 2nd Floor, Verde Building, 10 Bressenden Place, London, England, SW1E 5DH and is a wholly owned subsidiary of Carwow Ltd.

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