Fleet operators looking to replace or dispose of electric vehicles are benefiting from a strengthening used market, with new analysis suggesting improving residual values could further enhance the total cost of ownership (TCO) of battery electric vehicles (BEVs).
According to the latest retail market intelligence from automotive data specialist Cazana, used electric vehicle values at the benchmark three-year defleet point rose by 1.6% during July, marking the fourth consecutive month of growth. Since March, values have increased by almost 7%, equivalent to around £1,500 per vehicle.
The upward trend contrasts with the wider used vehicle market, where petrol and diesel models both slipped by 0.1% during July and hybrids fell by 0.3%. Cazana says the resilience of used EV prices is helping to improve fleet economics as organisations continue to transition towards lower-emission vehicles.
Demand for ex-fleet electric vehicles also remains strong. Several popular company car models, including the Peugeot e-208, Mercedes-Benz EQB, Volkswagen ID.4 and Tesla Model Y, are currently selling within 14 days of reaching the retail market, highlighting sustained appetite among used car buyers.
The figures offer encouragement for fleet managers balancing electrification targets with vehicle lifecycle costs. Stronger residual values can significantly reduce leasing costs and improve whole-life cost calculations, making EVs an increasingly attractive option despite higher upfront purchase prices.
Across the wider market, hatchbacks continued to perform strongly, recording value growth of around 1% during July as buyers continued to favour smaller, economical vehicles. SUVs remained broadly stable, while estates, saloons and MPVs recorded modest declines.
Derren Martin, automotive expert at Cazana, said electric vehicles continue to outperform the wider market as consumers respond to persistently high fuel prices and growing confidence in EV ownership.
“Once again, the main story is electric vehicles, which continue to increase in price and sell quickly,” he said. “With petrol and diesel prices remaining high, more dealers and consumers are taking the plunge into EVs.”
While Cazana expects used vehicle prices to remain broadly stable through the remainder of the summer, the latest data suggests improving residual values are strengthening the financial case for fleet electrification, giving organisations greater confidence when planning vehicle replacement cycles and long-term investment strategies.
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