Used EV prices squeezed by new car offers

Pictured: Derren Martin, automotive expert, Percayso Vehicle Intelligence

THE latest data from Percayso Vehicle Intelligence has identified a growing pricing divide in the UK used car market, with electric vehicles (EVs) bearing the brunt of year-end value corrections.

While the broader market maintains a steady footing, used EV values fell by 2% in December, at the 3-year age point, the largest drop of any fuel type, marking a relatively challenging conclusion to the year for the plug-in sector.

The decline, which equates to an average drop of approximately £350 per vehicle, follows a similar downward trend observed in November. In sharp contrast, traditional internal combustion engine (ICE) and hybrid vehicles remained remarkably firm. Petrol and diesel values saw minimal adjustments of just 0.75% and 0.5% respectively, while hybrids dipped by a modest 1%.

The latest Percayso figures suggest that a pincer movement of seasonal cooling and aggressive manufacturer behaviour is driving the accelerated decline in used EV pricing. As OEMs chased ambitious ZEV mandate targets toward the end of 2025, a wave of highly attractive new car offers likely cannibalised demand for used electric alternatives.

“Perhaps there should be a warning around EVs, which have dropped by the most of any fuel type in the last two months. OEMs need to focus on used EVs to ensure strong future residual values.”

Derren Martin, automotive expert, Percayso Vehicle Intelligence Tweet

“Currently, there remains little incentive, apart from price, for consumers to buy a used EV, and attractive finance rates on new electric cars can provide a short-term win by switching a buyer into a new car rather than a used one.

“Monthly payments and the whole industry rely on strong used car values at the end of a new car lease. Many will hope the government puts some focus on the used EV market in 2026. As for this year, January has started at a steady pace, and there is likely to be a small uplift in overall retail prices by the end of the month.”

Wider used car market trends

Beyond EVs, the wider used car market experienced a typical seasonal transition, with overall retail values at the three-year age point declining by just over 1% (around £200). In comparison, one-year-old vehicles dropped by 1.6%.

Market activity mirrored this slowdown. Volumes of adverts of three-year-old stock decreased by roughly 3% month-on-month, and total units sold in December were a third lower than in November as the industry paused for the Christmas break.

The data also highlighted a significant split in how different retailers managed their inventory. Independent dealers were the most proactive in adjusting prices, with values falling by 3.6%. Conversely, main dealers and car supermarkets held their ground more firmly, preferring to protect margins despite the seasonal lull in footfall.

Top performing brands as used cars

While the headline figures pointed toward a slight decline, several brands defied the seasonal trend. Mazda and Skoda both emerged as the month’s top performers, with retail prices increasing by 1.2%. Vauxhall remained a popular choice for value-conscious buyers, with prices ticking up by 0.5%.

On the other end of the spectrum, Land Rover (-1.7%) and Volvo (-2%) recorded declines for the second consecutive month. Land Rover appears to be correcting after a strong summer peak, while Volvo’s performance may be linked to high volumes of pre-registered cars, which are impacting used values.

As the industry looks ahead, Percayso reports that retail prices in early January have remained relatively flat, suggesting the market has navigated the year-end slowdown successfully and is preparing for a steady first quarter. Audi and BMW models have seen the most significant price appreciation since the start of the year.

The performance of different body styles further illustrated the nuances of the market. Hatchbacks were the standout success story, recording a slight value increase of 0.3%. SUVs and Estates both saw minor 1% declines, while MPVs followed a sharp seasonal pattern, dropping by more than 3.5% in December after a robust summer.