Declining Used Electric Vehicle Prices Amid New Car Incentives

In December 2025, used electric vehicle (EV) prices experienced a significant decline, falling by 2%, which marked the largest monthly drop among all fuel types. This decrease, equating to an average reduction of approximately £350 per vehicle, was attributed to a combination of aggressive new car incentives and a typical seasonal slowdown in the automotive market, as reported by Percayso Vehicle Intelligence. In contrast, petrol and diesel vehicle values saw minor adjustments of 0.75% and 0.5%, respectively, while hybrids experienced a modest decline of 1%. This trend highlights a widening pricing gap between used EVs and other powertrains as the year concluded.

Used EV prices face year-end pressure as new car offers weighUK new car sales rebounded in December

The decline in used EV prices is described as a "pincer movement" resulting from seasonal cooling and the behavior of original equipment manufacturers (OEMs). With OEMs aiming to meet ambitious Zero Emission Vehicle (ZEV) mandate targets by the end of 2025, attractive new car offers likely diverted consumer demand away from used electric alternatives. The overall used car market saw a more muted seasonal reset, with retail values for three-year-old vehicles dropping by just over 1% in December.

Used EV prices face year-end pressure as new car offers weigh

Independent dealers were noted to be more proactive in adjusting prices, with values falling by 3.6%. In contrast, main dealers and car supermarkets maintained firmer pricing strategies to protect their margins despite reduced foot traffic. Brand performance varied significantly; Mazda and Skoda emerged as the strongest performers with price increases of 1.2%, while Land Rover and Volvo recorded declines of 1.7% and 2%, respectively.

Used EV prices face year-end pressure as new car offers weigh

Derren Martin, an automotive expert, emphasized the need for OEMs to focus on the used EV market to ensure strong future residual values. He noted, “Currently, there remains little incentive, apart from price, for consumers to buy a used EV.” Martin also highlighted that attractive financing options for new electric cars could lead consumers to prefer new models over used ones. He expressed hope that the government would address the used Battery Electric Vehicle (BEV) market by 2026.

Used EV prices face year-end pressure as new car offers weigh

Despite the overall strength of the used car retail market, concerns were raised regarding the declining values of used EVs. Critics argue that without adequate incentives and support for the used EV market, the transition to electric vehicles may face significant challenges. The EY Mobility Consumer Index revealed that many car buyers are still leaning towards petrol and diesel vehicles due to concerns about upfront costs, limited range, and battery replacement expenses.

UK new car sales rebounded in December

Looking ahead, early January pricing has remained relatively flat, suggesting that the market may have navigated through the year-end slowdown. Analysts predict a potential uplift in overall retail prices by the end of January 2026, as the automotive sector continues to adapt to changing consumer preferences and market dynamics.

Used EV prices face year-end pressure as new car offers weigh