Falling used EV prices boost UK readiness but policy concerns remain

The factors assisting the UK’s transition to EVs have grown in the right direction, according to the AA’s latest EV Readiness Index

The factors assisting the UK’s transition to EVs have grown in the right direction, according to the AA’s latest EV Readiness Index, with the overall readiness score rising to 53.8 in Q1 2026 from 48.8 in Q4 2025. The increase reflects improving affordability in the used EV market and the progress on key consumer barriers

Despite this, the AA warns that mixed signals from government policy and continued weakness in EV demand risk undermining the longer-term health of the market, especially for fleets and manufacturers that underpin new EV sales.

The quarterly Index tracks eight indicators that influence drivers’ readiness to switch to EVs, combining them into a single Readiness Rating that measures how practical and attractive EV ownership is.

Although conditions have improved during the quarter, the index underscores a market that is still in transition rather than mass adoption, with affordability improvements driven primarily by falling EV prices rather than stronger consumer demand.

The increase in the overall Readiness Rating was primarily driven by falling prices in the used EV market, which dropped below the cost of equivalent petrol cars for the first time since the Index launched in September 2025, about 10% cheaper than comparable internal combustion engine vehicles.

The availability of lower-priced vehicles has created new opportunities for motorists considering an EV. However, the AA has warned that rapid depreciation poses a challenge for fleets and manufacturers, which rely on strong residual values to support new-vehicle sales and leasing models.

Other areas in the Index that saw progress include:

  • Upkeep score: 60 (unchanged). EVs are continuing to perform well in breakdown data, with 88.7% fixed at the roadside.
  • Charging score: 43, increasing from 40 in Q4 2025. Infrastructure is expanding to 118,321 public chargers, representing 39.4% of the government’s 2030 target of 300,000.

Running out of charge only accounted for 1.5% of callouts, a significant fall from historic levels, and evidence that range anxiety is gradually decreasing.

The Index revealed a persistent confidence gap among drivers considering used EVs, despite improving affordability.

Polling of more than 12,000 AA members found that:

  • Only 3% of drivers are confident about buying a used EV
  • 22% feel confident they would know how to charge one
  • 30% feel less confident driving an EV compared with petrol or diesel cars
  • 55% say the prospect of eVED may put them off buying a new or used EV

Consumer understanding of EV costs also remained limited, with 14% of drivers believing EV running costs are lower than petrol or diesel, despite evidence that maintenance and home charging can be cheaper.

The research suggests that clearer reassurance and better information on battery health and reliability would be essential to increasing demand, especially in the used market.

The AA has stated that consistent policy signals will be critical to developing consumer confidence, particularly following the recent debate around the proposed eVED mileage-based tax for EVs from 2028, which has led to some uncertainty for drivers considering the switch.

Matt Galvin, managing director, Polestar UK, said, “This research confirms that the transition to fossil fuel-free travel is too slow under the current policy framework. The latest energy crisis has sparked a surge in demand for EVs, with manufacturer data showing record interest in going electric in the UK. The government must act decisively to nurture this shift: introduce a second-hand EV grant to provide easier access to tail-pipe emissions-free driving, reversing the congestion charge for EVs, postpone the widely unpopular eVED, and build the world’s fastest EV charging network by delivering the funding and policy support necessary to complete the transition to electric.”

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