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Used Vehicle Market

Strong demand for ex-fleet EVs driving up residual values, Cazana finds

Since March, EV residual values have increased by 7%, or around £1,500 per vehicle.

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Strong demand for popular ex-fleet models is driving up residual values of electric vehicles (EVs), according to vehicle data provider Cazana.

Values of three-year-old EVs were up 1.6% year-on-year in July, the fourth consecutive month of price increases, while prices were down 0.1% for petrol and diesel models.

Since March, EV residual values have increased by 7%, or around £1,500 per vehicle.

Cazana said that rising residual values for EVs provides a vital lift to total cost of ownership (TCO) profiles for fleets, and will enable fleet managers to defleet with confidence.

In July, a number of popular fleet EVs were among the fastest-selling used cars, including the Volkswagen ID.4 Tesla Model Y, Peugeot 208 Electric and Mercedes-Benz EQB.

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Derren Martin, automotive expert at Cazana, said: “Once again, the main story is EVs, which continue to increase in price and sell quickly.

“With petrol and diesel prices at the pump remaining high as events in the Middle East remain volatile, more and more dealers and consumers are taking the plunge for EVs.

“The used car retail market in July remained stable for the second month in a row, after seeing prices increasing before June.

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“This should certainly be seen as a positive for the time of year, with multiple distractions for the consumer, including school holidays, hot weather, and the World Cup.

“Looking at the next few weeks, it will be interesting to see if demand drops as the school holidays continue. With volumes on forecourts increasing, it doesn’t seem likely that prices will rise overall, but they should remain relatively stable.”

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