Used electric vehicle (EV) values fell more sharply than any other fuel type in December as aggressive new car incentives and a typical seasonal slowdown combined to weigh on the plug-in sector, according to the latest data from Percayso Vehicle Intelligence.
The figures show used EV values at the three-year age point declined by 2% in December, the largest monthly drop across fuel types and a weaker end to the year for the used EV market.
The fall equated to an average reduction of around £350 per vehicle and followed a similar downward pattern recorded in November.
By comparison, the rest of the market remained relatively steady. Petrol and diesel values saw only minor adjustments of 0.75% and 0.5% respectively, while hybrids dipped by a modest 1%, underlining a widening pricing divide between EVs and other powertrains at year-end.
Percayso said the sharper EV correction reflects a “pincer movement” of seasonal cooling and manufacturer behaviour.
With OEMs pursuing ambitious ZEV mandate targets towards the end of 2025, a wave of attractive new car offers is likely to have drawn demand away from used electric alternatives.
Across the wider used car market, the seasonal reset was more muted. Overall retail values at the three-year point fell by just over 1% in December, or roughly £200, while one-year-old vehicles declined by 1.6%.
Activity in the market also softened in line with the Christmas period. Ad volumes for three-year-old stock dropped by around 3% month-on-month, and total units sold in December were a third lower than in November as the industry slowed for the festive break.
The data also pointed to differing approaches to stock management.
Independent dealers were the most proactive in repricing, with values falling by 3.6%. Main dealers and car supermarkets were more resistant to cutting, holding firmer in an effort to protect margins despite reduced footfall.
Brand performance varied, with a number of manufacturers bucking the seasonal trend. Mazda and Skoda were the month’s strongest performers, each posting a 1.2% rise in retail prices, while Vauxhall edged up 0.5% as demand for value-focused models remained resilient.
At the other end of the table, Land Rover (-1.7%) and Volvo (-2%) recorded declines for the second month running.
Percayso suggested Land Rover may be normalising after a strong summer peak, while Volvo’s softer performance could be linked to higher volumes of pre-registered cars putting pressure on used values.
Looking ahead, Percayso said early January pricing has been relatively flat, suggesting the market has worked through the year-end slowdown and is set for a steadier first quarter.
Audi and BMW models have seen the most notable price appreciation since the start of the year, it added.
Commenting on the latest data, Derren Martin, automotive expert, said: “The used car retail market remains strong, although 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.
“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 BEV 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.”
Body-style performance also showed a mixed picture. Hatchbacks were the stand-out, recording a slight value increase of 0.3%. SUVs and estates both fell by around 1%, while MPVs saw the steepest decline, dropping by more than 3.5% in December after stronger performance over the summer.