Anxiety around EV residuals is evaporating, reports Cazana

AUTO data provider Cazana says that the stability and targeted growth in three-year-old residual values provide massive relief for fleet operators and contract hire companies managing de-fleeting schedules in mid-2026.

The latest data suggests consistent demand and strategic pricing have kept recent residual values robust, with EVs and premium body styles leading the charge.

“The historical anxiety surrounding collapsing electric vehicle residual values is officially evaporating. Two consecutive months of EV price appreciation, combined with rapid days-to-turn, mean operators can offload ex-fleet EVs in the knowledge they will achieve strong prices relatively quickly.”

Derren Martin, Automotive Expert, Cazana Tweet

The used car market maintained its upward trajectory through May 2026, defying the traditional bank holiday seasonal slowdown.

For the fifth consecutive month this year, average three-year-old retail values ticked upward, rising 0.7% (approximately £170) in May. Middle-aged stock also saw gains, with 5-year-old cars rising 0.6% (around £80). Meanwhile, 1-year-old vehicles held level, and older 10-year-old stock saw a negligible 1% dip (about £75).

Alternative fuel vehicles dominated the market for the second consecutive month. Used EV values rose by 1.2% (building on a 1.1% gain in April), while hybrids increased by 0.8%, marking a cumulative 4% growth over the last 60 days. Propelled by high pump prices, EVs have officially become the fastest-selling fuel type on the market, turning over 20 days quicker than equivalent diesels and 10 days quicker than petrol cars.

Saloons and estates continue popularity

Saloons and estates continued their stellar 2026 run. Saloons jumped another 2.3% in May following a 5% surge across March and April. Estates ticked up 0.3% off the back of a prior 5% two-month increase. Conversely, MPVs dropped for the third consecutive month, falling 1.6%, while convertibles and coupe-cabriolets predictably rose 1.6% as summer weather took hold.

“With saloons and estates continuing their multi-month valuation spikes, operators can optimise their remarketing timing. Vehicles coming off lease in these categories will yield excellent returns at auction, offsetting underperforming asset classes like MPVs.”

Derren Martin, Automotive Expert, Cazana Tweet

Volvo values strong

the strongest manufacturer at the 3-year age point with a 2.8% value increase (nearly 6% in two months). Audi (+2.2%) and BMW (+1.8%) also posted strong gains, while Kia (-0.7%) and Ford (-0.2%) lagged slightly behind.

Derren added: “The used car market in May continued to be strong, following a trend seen since the start of the year. And, for the second month in a row, we saw a surge in the sale of used EVs, with prices rising more than any other fuel type. Estates, saloons and hatchbacks continue to perform well for dealers, with demand outstripping supply, whilst SUVs also went up in price.”