Cox Automotive has found that electric vehicles (EVs) are depreciating faster than their hybrid equivalents.
In July 2025, hybrid vehicles under 24 months old were valued at 68% of their new price on average, while a comparable EV was valued at 49% of its new price.
Cox found that EVs and hybrids under 24 months old were valued similarly in November 2022, both at around 90% of their new price.
Since then, hybrids have been valued between 65% and 85% of their new prices, while EVs values fell below 65% of their new price in early 2023, before depreciating sharply later that year and remaining around 50% since.
Philip Nothard, insight director at Cox Automotive Europe said: “Hybrid vehicles offer drivers an alternative, cost-effective solution for buyers who want to transition to a more sustainable form of transport but have concerns around range or infrastructure.
“This is driving demand for them in the used car market, which helps support stronger residuals.
“Additionally, these vehicles have a lower cost of entry than their electric equivalents, which means they hold their value better when entering the used market.
“Hybrid vehicles are a lucrative opportunity for UK drivers and the automotive market today, which is evident in the success of many new market entrants coming to the UK with hybrid offerings.
“They deliver a clear lifetime cost advantage over internal combustion and electric vehicles, making them an attractive option for buyers hesitant or cautious about making the full electric transition.
“Yet, evolving government policy could undermine this potential if hybrid ownership becomes less financially viable.”
Cox Automotive found that 29% of drivers are considering a hybrid for their next car.
Plug-in hybrid registrations are up 31.5% year-to-date, while hybrid registrations are up 6.5%.
However hybrids have been subject to the same Vehicle Excise Duty (VED) rates as petrol and diesel cars since April.
