Hybrid vehicles are retaining their value far more strongly than pure EVs, according to Cox Automotive.
The data firm said that in July this year, hybrids under two years old held 68% of their original cost new (OCN) on average, while EVs of the same age were at 49%.
This is a big change from November 2022, when hybrids and EVs were only two percentage points apart (90% and 88% respectively).
Cox Automotive Europe insight director Philip Nothard said: “Hybrid vehicles offer drivers an alternative, cost-effective solution for buyers who want to transition to a more sustainable form of transport but have concerns around range or infrastructure.
“This is driving demand for them in the used car market, which helps support stronger residuals.
“Additionally, these vehicles have a lower cost of entry than their electric equivalents, which means they hold their value better when entering the used market.”
Cox Automotive added that, despite taxes becoming less favourable to hybrids, they were continuing to grow in popularity in the UK, with consumer data it produced in association with Regit revealing that 29% of drivers were considering a hybrid for their next vehicle, and recent registration data also showing increases for hybrids.
Nothard said: “Hybrid vehicles are a lucrative opportunity for UK drivers and the automotive market today, which is evident in the success of many new market entrants coming to the UK with hybrid offerings.
“They deliver a clear lifetime cost advantage over internal combustion and electric vehicles, making them an attractive option for buyers hesitant or cautious about making the full electric transition.
“Yet, evolving government policy could undermine this potential if hybrid ownership becomes less financially viable.”
