Used electric vehicle (EV) prices came under renewed pressure at the end of 2025, as seasonal demand softening combined with rising supply and aggressive new-car incentives. New analysis from Percayso Vehicle Intelligence and AA Cars highlights how EV values continue to adjust after a volatile year.
Percayso data shows that at the three-year age point, used EV values fell by 2% in December, the largest monthly drop of any fuel type. This equates to an average reduction of around £350 per vehicle and follows a similar decline recorded in November.
By comparison, internal combustion engine vehicles remained relatively stable. Petrol prices dipped by 0.75%, diesel by 0.5% and hybrids by 1%, underlining a widening price gap between EVs and other fuel types.
New car incentives diverting demand
Percayso suggests the accelerated decline reflects a “pincer movement” of softer seasonal demand and intensified manufacturer activity. As original equipment manufacturers pushed to meet zero-emission vehicle targets towards the end of the year, heavily incentivised new EV offers are believed to have diverted buyers away from used stock.
Across the wider used-car market, three-year-old vehicle prices fell by just over 1% in December, around £200 on average, while one-year-old cars saw a steeper 1.6% drop. Market activity also slowed over the Christmas period, with sales volumes down by a third compared with November.
Retailer behaviour varied notably. Independent dealers adjusted prices most aggressively, with values falling by 3.6%, while franchised dealers and car supermarkets held prices firmer in an effort to protect margins.
Signs of stabilisation emerging
The trend is echoed in the latest AA Cars Used Car Index, which shows prices of the UK’s most searched-for electric and hybrid vehicles fell for the fourth consecutive quarter in Q4 2025. Average prices across the top 20 models dropped by 1.5% quarter-on-quarter to £16,826 and were down 9.3% year-on-year.
Some models experienced particularly sharp annual falls, including the Nissan Leaf and the Ford Puma. However, nearly half of the most searched-for electrified models recorded price increases in Q4, suggesting parts of the market may be stabilising.
Prices for the Toyota Yaris rose by 3.7% during the quarter, while values for the Tesla Model 3 and Renault Zoe edged upwards.
James Hosking, managing director of AA Cars, said the slowdown in the rate of decline suggests the market is beginning to settle after a year of sharp adjustment, much of which was driven by a surge of ex-fleet EVs and falling new-car prices.
Percayso added that early January pricing has remained broadly flat, indicating the market has navigated the year-end slowdown successfully and may be heading into a steadier first quarter.
Sourced via: Fleet News
