Electric vehicle values continue to slide in March, says Cap HPI

Battery electric vehicle prices in the UK fell 1.7% in March. Learn how weak demand and fast depreciation are shaping the EV market in 2025.

Battery electric vehicles (BEVs) faced continued price pressure in March, with average values falling by 1.7% – equivalent to £320 – according to Cap HPI. This marks the fourth consecutive month of depreciation in the UK’s used electric car market.

While BEVs dropped in value, petrol cars saw a modest 0.4% (£70) increase, hybrids rose by 0.3% (£45), and diesel models remained flat. Plug-in hybrids also saw a slight decline of 0.2% (£60).

“This ongoing drop in BEV values is concerning. Only two months in the past year – October and November – have seen stable prices,” said Chris Plumb, head of current valuations at Cap HPI.

The March list of biggest losers in value was dominated by electric and hybrid models, including the Polestar 3 (-9.7%), BMW i7 (-7.8%), and Mini Cooper Electric (-5.8%). However, the Tesla Model Y held its value, while the Model 3 fell by just 1%, outperforming the BEV segment average.

Cap HPI's data shows 57% of three-year-old electric models saw value reductions, 37% remained stable, and just 6% increased. The Volvo XC40 Electric stood out with a 3.5% (£806) price rise – the only BEV among the top 10 risers in March.

Market fragmentation, oversupply, and shifting consumer behavior are driving these trends. Buyers are becoming more selective, particularly with older, high-mileage vehicles. This is pushing dealers to adopt a “little and often” stock strategy in a competitive wholesale environment.

Further complicating matters, rapid depreciation – up to 50% in the first year for some models – is impacting BEV residual values and making leasing less attractive. According to recent reports, models like the Audi e-Tron GT and Ford Mustang Mach-E are among the steepest depreciators.

In February 2025, electric vehicles accounted for 25% of new car registrations in the UK. However, private buyer adoption remains sluggish, in contrast to fleet demand. Meanwhile, Germany is seeing BEV sales drop due to subsidy cuts, and France is feeling the impact of new vehicle taxes.

The UK government is now exploring new incentives, including low-interest loans, to help private consumers transition to EVs. As manufacturers face regulatory pressure to meet sales targets, these measures may be essential to stabilise the BEV market moving forward.

Source: cardealermagazine.co.uk