Executive summary
A curious paradox has emerged in Nordic automotive markets: strong interest in electric vehicles (EVs) has coincided with steep declines in the resale values of many popular models. For buyers and investors this has created rare opportunities; for manufacturers, fleet operators and policymakers it presents a set of strategic puzzles: how to stabilise residual values, mobilise secondary markets, and align incentives with long‑term sustainability goals. This article explains the drivers behind the price correction, compares EVs with internal‑combustion equivalents, surveys recent market dynamics across the Nordics, and outlines the implications for corporate decision‑makers and regulators.
The scale of the decline — a sharper fall than for ICE cars
A Swedish compilation by financial magazine Privata Affärer highlighted one striking outcome: petrol and diesel versions of mainstream SUVs such as the VW Tiguan, Skoda Kodiaq, VW T‑Roc and Toyota RAV4 have lost relatively modest amounts — SEK 7,000–33,000 over roughly three years for low‑mileage examples — while several electric models experienced far larger markdowns. Privata Affärer’s comparison showed used VW ID.4, Volvo XC40 Recharge and Tesla Model Y examples shedding between roughly SEK 235,000 and SEK 419,000 versus their new‑car prices — in some cases nearly halving in value within three years.
Those numbers shocked buyers and executives alike. Yet they reflect dynamics that were visible in 2022–2024 and that have continued to influence the market: the rapid expansion of EV supply, shifting incentives, and elevated uncertainty about batteries and software obsolescence.
What drove the steep EV depreciation?
Multiple, interlocking forces explain why many used EVs depreciated faster than comparable petrol or diesel cars:
Supply shocks and steep new‑car price corrections. An influx of new EV models — combined in some cases with aggressive pricing from manufacturers and new entrants — depressed asking prices across the board. OEMs also adjusted pricing strategy to improve competitiveness, which fed through to used‑car expectations.
Lease‑return volumes. Large corporate and manufacturer leasing programmes, particularly in the early mass‑adoption phase, generated waves of nearly new EVs entering the secondary market. High supply of low‑mileage units pushes prices down.
Battery uncertainty. Residual‑value models still skirt the complexity of battery health, long‑term degradation and replacement costs. Consumers (and many valuation algorithms) price in perceived risks: potential range loss, expensive battery repairs and uncertain second‑life value.
Policy shifts. Changes to purchase subsidies and tax regimes across markets created demand volatility. Where incentives were reduced or reallocated, demand cooled and residuals fell; conversely, stable, generous incentives (notably in Norway) have supported stronger used‑EV values.
Technology and software lifecycle. Rapid improvements in range, charging speed and software features make earlier models feel obsolete faster than comparable ICE models. OTA (over‑the‑air) support mitigates obsolescence; models lacking sustained software support lose value more quickly.
Consumer perceptions and charging infrastructure. Range anxiety, perceived charging inconvenience and uneven public charging networks erode willingness to pay for used EVs in some geographies more than others.
Why many petrol/diesel models held value
By contrast, many petrol and diesel vehicles — especially practical SUVs and proven models with strong brand equity — retained much of their resale value. The reasons are straightforward: mature technology, predictable maintenance costs, broad servicing networks, and steady demand from buyers for affordable, reliable transport in areas where charging infrastructure remains patchy. For export markets that import Nordic used cars, ICE vehicles remain attractive and command stable prices.
Market dynamics since the correction: recovery, segmentation and geography
After the initial shock of price declines, markets have begun to bifurcate and stabilise. From 2024 into 2026, used EV prices have shown signs of recovery in many segments as supply normalised, buyers adjusted expectations, and charging infrastructure matured. Key cross‑Nordic observations:
Norway: With the highest EV penetration and longstanding policy incentives, used EV residuals have remained comparatively strong. Buyers here are less price‑sensitive about electric drivetrains and more confident about charging access and battery longevity.
Sweden and Denmark: More volatile. Sweden has seen wider swings as incentives were adjusted and fleet returns peaked. Denmark’s mixed policy environment and taxation differences continue to shape demand unevenly.
Finland and the Baltics: Lower EV adoption and sparser charging infrastructure mean used EVs depreciated more steeply; however, targeted incentives and growing charging investments are beginning to support demand.
Strategic implications for stakeholders
For senior executives, investors and policymakers, the used‑EV correction has direct strategic consequences.
OEMs and dealers: Residual‑value management must become core to EV strategy. That means transparent battery warranties, certified pre‑owned programmes, buyback schemes, and clear communication about software support and lifecycle services to rebuild buyer confidence.
Fleet managers and corporate buyers: Total cost of ownership (TCO) calculations should be updated to reflect current depreciation patterns and battery‑related risks. Long‑term leasing structures and mid‑life battery health certification can mitigate volatility.
Investors and entrepreneurs: The correction has created arbitrage opportunities in the used‑EV market — for remarketers, specialist finance providers and battery refurbishment businesses. But capitalising requires expertise in battery valuation, charging infrastructure and secondary‑market distribution.
Policymakers: If EV transition objectives include sustainability and fleet decarbonisation, policymakers should design incentives that support secondary markets (e.g., incentivising certified second‑hand EV purchases, harmonised battery health standards, and clearer end‑of‑life regulations) rather than only new‑car subsidies. Reliable charging infrastructure remains a precondition for robust residual values.
Risks and opportunities ahead
Risks: Continued volatility in residual values; regulatory reversals; rising interest rates affecting used‑car financing; technological leaps (solid‑state batteries, ultra‑fast charging) that could accelerate obsolescence; and uneven infrastructure deployment.
Opportunities: Monetising second‑life batteries, expanding certified pre‑owned EV offerings, developing battery health analytics and valuation platforms, investing in charging and service networks, and leveraging cross‑border trade in Nordic markets.
Why it matters now
This is a transition moment. The initial pricing disruption in used EVs has already reset consumer expectations and recalibrated TCO calculations. How industry and policymakers respond will shape the commercial viability of EVs in the second‑hand market — a critical determinant of mass adoption, sustainability outcomes and manufacturers’ profitability.
Conclusion — a strategic perspective
The sharp price correction in used EVs exposed structural frictions in the early electric transition: mismatches between supply and durable demand, uncertainty over battery value, and policy-driven volatility. But the correction also surfaces opportunities to professionalise the secondary market: better warranty structures, battery certification, life‑cycle services and targeted public policy can stabilise residuals, unlock value and accelerate sustainable transport. For executives, the imperative is clear: treat the used‑EV market not as a side effect, but as an integral element of product, finance and sustainability strategy.
Editorial Outlook
For a follow‑up feature, Nordic Business Journal proposes a deep dive into “Second Life, Real Value: Batteries, Circularity and the New Economics of the Used‑EV Market.” That piece would examine second‑life battery markets, recycling economics, certification standards, and how new business models (battery leasing, refurbishment hubs, and vehicle‑as‑a‑service) can restore residual values while meeting sustainability goals. It would include interviews with OEMs, battery recyclers, fleet operators and regulators across Norway, Sweden and Denmark.
Reader engagement
Nordic Business Journal welcomes conversation and collaboration. If you are an executive, investor, policymaker, entrepreneur or researcher with insights, data or case studies on the used‑EV market, please connect with our editorial team. We welcome submissions, partnerships for investigative reporting, and proposals for events and roundtables exploring the commercial and policy challenges of the electric transition.
References
1. International Energy Agency (IEA) (2024) Global EV Outlook 2024. Available at: https://www.iea.org/reports/global-ev-outlook-2024 (Accessed: 5 June 2026).
2. European Automobile Manufacturers Association (ACEA) (2025) New passenger car registrations — by fuel type. Available at: https://www.acea.auto/statistics/tag/category/by-fuel/ (Accessed: 5 June 2026).
3. Autovista Group (2024) Insights: residual values and the used electric‑vehicle market. Available at: https://autovistagroup.com/insights (Accessed: 5 June 2026).
4. Transport & Environment (T&E) (2023) Battery lifecycle, second‑life and recycling — implications for EV markets and policy. Available at: https://www.transportenvironment.org/ (Accessed: 5 June 2026).
5. Blocket (2024) Bilrapport — Used car market trends (Sweden). Available at: https://about.blocket.se/ (Accessed: 5 June 2026).
6. Privata Affärer (2026) Galna priser på bilmarknaden – bästa köpen rasar i värde. https://www.privataaffarer.se/native/arets-kreditfond-ett-kvitto-pa-att-var-strategi-fungerar/. Published 24th May, 2026 (Accessed: 5 June 2026).