BEVs have recorded a marked improvement in performance compared with earlier this year, supported by strong demand and growing interest from independent dealers.
Used BEV values fell by just 0.2% month-on-month in July at the three-year, 60,000-mile benchmark, making electric the second-best-performing fuel type behind hybrid, which increased by 0.3%.
The BEV result was 0.6 percentage points better than the rest of the used market, with the remainder of the market falling by 0.8%. Solera cap hpi had forecast a 0.8% overall decline for July, against a typical seasonal movement of 1.1%.
Dylan Setterfield, head of forecast strategy at Solera cap hpi, said: “We’re expecting electric vehicles to continue to perform better than the overall average in the short term, but that favourability is likely to reduce over each of the next three months.”
August is expected to follow a similar pattern. Solera cap hpi is forecasting an overall used value decline of around 1.0%, again slightly better than the typical seasonal average fall of 1.1%, although weaker than the 0.5% decline recorded in August 2025.
BEVs are again expected to outperform the overall market, with values performing considerably better than the 1.9% decline recorded in August last year. Their advantage over the wider market is expected to remain similar to July before narrowing in subsequent months.
Demand remains strong, with the company reporting that retail days in stock for electric cars continue to compare favourably with other fuel types. Performance varies significantly by vehicle age, however, younger used EVs are particularly affected by new car offers.
Solera cap hpi is also seeing evidence of more independent dealers returning to the used BEV market as margins improve. The company believes higher fuel prices have helped accelerate that trend and expects electric vehicles to retain some of their current advantage while fuel costs remain elevated. That support could soften if oil prices return to more normal levels.
July’s relatively modest 0.2% BEV decline also concealed some movement at the individual model level. Most models remained unchanged, while similar proportions increased and decreased in value.
Those recording increases rose by an average of 1.6%, compared with 2.6% in the previous month. Models that fell declined by an average of 2.8%, compared with 2.1% a month earlier.
New-car pricing remains one of the pressures on younger used BEVs Discounts on recently launched electric models are expected to continue affecting used values, while the Government’s Electric Car Grant adds another factor for dealers to consider.
At the time of Solera cap hpi’s analysis, 59 models had been announced as eligible for the grant. Most qualified for £1,500, while 16 were eligible for the top £3,750 level, with six of those dependent on battery choice.
The wider used market is expected to soften from September, with increasing used vehicle volumes putting further pressure on values during the final quarter.
