Tesla leads the slide as EV resale values drop

Secondhand hybrid vehicles have held their value better than their petrol, diesel and electric counterparts over the past 12 months, according to new research from insurtech Percayso Inform, published exclusively by Insurance Times.

This finding was based on data from Percayso Inform’s vehicle intelligence platform and represents daily snapshots of over 800,000 vehicles across three million car sale adverts over the past 12 months.

Richard Tomlinson, managing director at Percayso Inform, explained the value of this data set: “Having granular information about car valuation is critical for both claims and underwriting departments.

“For underwriters, understanding the trends of valuations helps with accurate, fair and competitive pricing. When it comes to claims, it informs settlement offers. With half a million cars written off each year, this is important to get right.”

Looking at price changes of secondhand vehicles from May 2024, sellers have – at large – seen a decrease in the value of used vehicles. Of the major fuel types, only hybrid cars have held their value, with petrol, diesel and electric cars seeing resale prices drop, according to Percayso Inform’s data.

Hybrid vehicles weathered a nearly 3% decrease in resale value in mid-2024, but rallied over last winter to finish 0.3% up over the last 12 months on average and 3% up since the beginning of 2025.

Petrol, diesel and electric cars, meanwhile, all underwent continued value falls over the past year, ending the period 3.5%, 6.6% and 6.7% down respectively.

Tomlinson said: “Hybrids are proving to be the sweet spot for many consumers who are keen on electrified motoring, but not yet fully prepared to give up the reliability and familiarity of a petrol pump.”

Tesla leads the slide

Much of the fall in electric vehicle resale prices was driven by the plummeting value of secondhand Teslas. This brand of electric vehicle saw its resale prices fall by 15.2% over the reporting period, down from an average valuation of £26,644 in May 2024 to £22,594 in May 2025.

Excluding Teslas, the average price of a secondhand electric vehicle fell from £28,174 in May 2024 to £25,151 in May 2025.

Two notable exceptions to the electric car trend were the electric Mini and Polestar vehicles. Minis climbed 3.51% to an average valuation of £22,606 over the last year, while Polestars rose 7.35% to reach a valuation of £29,678.

Much of the loss of value in secondhand electric vehicles may be due to a flooding of the used car market.

In June 2023, some 17,627 electric vehicles were on the used car market – this nearly doubled to 31,790 by June 2024 and is on track to nearly double again this year, with 47,410 used electric vehicles recorded in the used car marketplace in May 2025.

Tomlinson explained: “In terms of vehicle trends, electric car values have been affected by ongoing concerns about range and charging infrastructure. Tesla has been hit the most as the brand is out of favour, but there is more to it than that.

“A surge of electric vehicles entering the secondhand market has a dampening effect on prices too. There were 47,410 on the market [in May 2025], more than double the 17,627 recorded in June 2023.”