Used Car Prices Hold Steady in January 2025, But EVs Take the Biggest Hit
Let’s have look how used car prices hold steady and see what it means for buyers and sellers in early 2025. If you were hoping for a big drop in used car prices to start 2025, you might be disappointed. Prices dipped only 0.1% in January, showing that the used car market is still holding strong despite seasonal slowdowns.
But not all vehicles are following the same trend—electric cars saw the biggest price drop, falling 1.1%, while diesels actually gained value, rising 0.2%. Meanwhile, petrol prices slipped by 0.1%, and hybrids dropped 0.6%. So, used car prices hold steady, what’s driving these shifts?
Why Did Used EV Prices Fall the Most?
While overall used car prices barely moved, electric vehicles saw the steepest drop—and that’s not too surprising. Here’s why:
1. More Used EVs Are Entering the Market
- Over the last few years, EV sales have skyrocketed. Now, many early buyers are trading in their older electric cars, increasing the supply of used EVs.
- More cars on the market means more competition among sellers, which naturally pushes prices down.
2. New EV Prices Keep Dropping
- Tesla, Ford, and other automakers have been cutting the prices of new electric cars, making them more affordable than ever.
- If a brand-new EV is only slightly more expensive than a used one, many buyers opt for the new model—forcing used EV sellers to lower their prices.
3. Battery Life & Charging Concerns
- Some buyers are hesitant to buy older EVs because of concerns about battery degradation.
- Unlike petrol or diesel cars, where high mileage isn’t always a deal-breaker, an EV’s battery health plays a huge role in resale value.
- Charging infrastructure is getting better, but it’s still not perfect, which makes some buyers think twice before going electric.
With more EV options, lower new car prices, and battery worries, it’s no surprise that used electric cars are seeing the biggest price declines.
Why Are Diesel Cars Gaining Value?
While EV prices are falling, diesel cars are actually going up in value, with an increase of 0.2% in January. But why are diesels, which have been under pressure from strict emissions regulations, holding steady—or even rising?
1. Long-Distance Drivers Still Love Diesel
- Diesel cars are still the go-to choice for drivers who rack up high mileage, such as sales reps and business owners.
- They offer better fuel efficiency on long journeys compared to petrol or hybrid alternatives.
2. Fewer New Diesel Models Available
- Many manufacturers have phased out diesel cars, meaning there are fewer new options hitting the market.
- With limited supply, well-maintained used diesel models are becoming more valuable.
3. Diesels Are Still Big in Rural & Commercial Markets
- Farmers, construction workers, and fleet operators still rely on diesel-powered trucks and SUVs.
- In remote areas where charging stations are scarce, diesel remains a practical choice.
Even though diesel cars are being phased out long-term, right now, demand is still strong enough to push prices up.
What’s Happening with Petrol & Hybrid Cars?
While diesel prices crept up, petrol and hybrid vehicles saw small declines:
- Petrol cars fell just 0.1%, indicating steady demand and no major pricing shifts.
- Hybrids dropped 0.6%, possibly because more plug-in hybrids (PHEVs) and newer models are hitting the market.
Why Are Hybrid Prices Dropping?
- More used hybrids are available, giving buyers more choices and forcing prices down.
- Some hybrid buyers are skipping traditional hybrids in favor of plug-in hybrids or full EVs.
- With fuel prices staying relatively stable, some buyers are sticking with fuel-efficient petrol models rather than paying extra for a hybrid.
What This Means for Buyers & Sellers
If You’re Buying a Used Car…
✅ Now’s a great time to buy a used EV – Prices are falling, and there’s more choice than ever.
✅ Diesels may still be worth considering – If you drive long distances, a diesel could be a smart investment.
❌ Petrol & hybrid cars aren’t seeing big discounts – If you’re waiting for a major price drop, it may take some time.
If You’re Selling a Used Car…
❌ EV owners may need to adjust expectations – With prices falling, be ready to lower your asking price to stay competitive.
✅ Diesels are in demand – If you have a well-maintained diesel, now could be a great time to sell.
✅ Petrol & hybrid car sellers are in a decent spot – While prices are dipping slightly, demand remains relatively stable.
What’s Next for the Used Car Market?
With the year just getting started, here’s what to expect in the coming months:
📉 Used EV prices will likely keep falling as more models enter the market.
📈 Diesel values may stay steady or even rise further as supply tightens.
🚗 Petrol & hybrid prices will likely stay stable, with small fluctuations.
💰 As spring approaches, used car demand could rise, keeping prices from dropping too much further.
If you’re in the market for a used car used car prices hold steady, now is a great time to consider an EV or a diesel, depending on your driving needs. If you’re selling, knowing the market trends will help you price your car competitively.
🚗💨 No matter which side of the deal you’re on, staying informed about pricing trends will help you make the best decision in 2025!
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