A recent assessment of used vehicle values has shown that electric vehicles (EVs) have experienced the largest depreciation in January 2025 compared to other fuel types.
EVs have seen the largest drop in value at the three-year mark this month, with a decline of 1.1%, equating to an approximate £240 reduction, as per the latest data from Cap HPI.
Meanwhile, diesel vehicles registered a rise of 0.2%, which equates to an additional £40 in value. Hybrids maintained a stable position with no significant change in their values.
Petrol-powered vehicles recorded a marginal dip of 0.1%, or around £60, while plug-in hybrids saw a 0.6% decrease, which is approximately £175.
Despite these fluctuations, the overall used car market remained strong, with a minimal overall decline of just 0.1% in January.
At the one-year mark, vehicle values saw a slightly larger drop of 0.3%, which amounts to approximately £150.
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By GlobalData
This trend of greater depreciation in younger cars may be attributed to attractive new car deals and significant discounts on pre-registered models, which can divert consumer interest from the used car market.
Cap HPI senior valuations editor Jeremy Yea said: “Had the monthly deadline been a few days later, it is quite possible that this monthly change could have been flat or even a slight positive.
“Cap Live subscribers may see this in the figures in the coming days and may have already noticed it in the brief period between the drafting of this overview and the start of February.
“It’s a bit of a myth that values go up in January, as since the introduction of CAP Live in 2012, the average monthly movement for this period is a negligible -0.2%. Only three years since 2012 have resulted in positive February monthly movements – 2012 (0.5%), 2020 (0.6%) and 2023 (0.1%) – with the weakest being a drop of 0.7% back in 2019.”
