Retail prices for electric vehicles in Belgium dropped nearly 12 percent year-over-year in Q1 2025. The numbers affirm the ongoing trend of low interest in zero-emission cars on the secondhand market.
As the mismatch between supply and demand grows, leasing companies seek to reassess their residual value strategies. Will corporate vehicles become increasingly more expensive?
According to new data from AutoScout24, the average price of a second-hand EV fell from €48,485 in Q1 2024 to €42,764 this year, a decline of 11.8 percent. That correction comes as registrations of used EVs jumped as much as 46.6 percent in March compared to a year earlier, reaching 7,195 units. However, their share of about 4 percent of the total used market remains modest.
Across Europe, three-year-old BEVs now retain just 45.1 % of their original list price, the weakest of any fuel type, according to data from expert Autovista, which expects further falls this year and next.
Hesitation prevails
But back to Belgium. Despite the surge in volume, private buyers are still essentially sitting out. Also on the market for new EVs, they represent no more than 13.9% of registrations, held back by the higher prices, the fast-evolving battery technology, charging concerns, and a perceived lack of long-term value.
The gap is placing considerable strain on the leasing sector, which remains the prime supplier of secondhand EVs. Over half of all new EV registrations in Belgium during Q1 were made via lease contracts.
“Residual values are coming in well below expectations,” said Stijn Blanckaert, managing director of Renta, the federation representing vehicle rental and leasing firms in Belgium, to the Flemish newspaper Het Nieuwsblad. “If this trend continues, leasing companies will be forced to adjust.”
Several options are on the table: raising lease rates, extending contract durations, or redeploying returned vehicles in a second lease cycle. “We’re already advising customers to hold on to their EVs longer,” added Jo De Bruyne, head of remarketing at Arval Belgium. “We’ve also introduced re-leasing of used EVs to spread risk. Thanks to the longer service life of electric vehicles, it’s a viable model.”
Arval has also introduced battery health certificates to boost buyer confidence in the used market.
Tesla on top
AutoScout24 reported modest price declines of 1.2 percent across all vehicles over the same period. But the most pronounced drop was in the used EV category. New EVs fell 4.5 percent, while used ones declined nearly three times as much.
Tesla remains the dominant brand on AutoScout24’s platform, leading in listings, searches, and sales. The Model 3 averaged around €29,000 in Q1, followed by the Ford Mustang Mach-E (€49,000) and Mini Cooper SE (€25,000).
AutoScout24 Belgium CEO Vincent Hancart believes the signs are mixed. “Interest is growing, and prices are becoming more accessible,” he said. “But the market is still volatile.” The slow adoption of the second-hand market will affect vehicle choice in companies’ car policies. It might entail that employees run their cars for longer periods.
Ripple effects
News agency Reuters stated that some leasing companies doubled their rates over the past three years. In Belgium, an increase of 8 to 12% higher monthly rates for new EV orders has been reported since the beginning of the year.
Another ripple effect is that the discrepancy could cause a rebound of leased plug-in hybrids, for which the government has loosened the fiscal ties, making them 100% deductible through 2027.
Last but not least, the upcoming wave of more affordable EVs and rising China-based competition is set to squeeze the used car market even harder, as buyers will be offered a choice of a new model at the cost of a second-hand one. There’s no light in the tunnel for leasing companies anywhere soon, and they must take a flexible approach.
