Used battery electric vehicle (BEV) values are expected to continue outperforming the broader used car market through August 2026, although their competitive advantage is projected to narrow heading into the final quarter of the year, according to Solera Cap HPI.

BEVs have recorded a marked turnaround in performance compared with earlier this year, supported by strong demand and growing interest from independent dealers.

August looks set to follow a similar pattern to July, when used BEV values fell by a marginal 0.2% at the three-year, 60,000-mile benchmark. This performance made electric the second-best-performing powertrain behind hybrids, which grew by 0.3%.

BEVs comfortably beat the rest of the used market, which experienced a steeper 0.8% decline. This overall market drop was slightly healthier than the traditional July seasonal norm of a 1.1% decrease.

For August, Solera Cap HPI is forecasting an overall used value decline of around 1.0%, again slightly better than the typical seasonal average fall of 1.1%, although weaker than the 0.5% decline recorded in August 2025.

BEVs are again expected to outperform the overall market, with values performing considerably better than the 1.9% decline recorded in August last year. Their advantage over the wider market is expected to remain similar to July before narrowing in subsequent months.

Dylan Setterfield, head of forecast strategy at the automotive data specialist, said: “We’re expecting electric vehicles to continue to perform better than the overall average in the short term, but that favourability is likely to reduce over each of the next three months.”

Demand for BEVs remains strong, with the company reporting that retail days in stock for electric cars continue to compare favourably with other fuel types. Performance varies significantly by vehicle age, however, younger used EVs are particularly affected by new car offers.

Solera Cap HPI is also seeing evidence of more independent dealers returning to the used BEV market as margins improve. The company believes higher fuel prices have helped accelerate that trend and expects electric vehicles to retain some of their current advantage while fuel costs remain elevated. That support could soften if oil prices return to more normal levels.

Despite recent increases in some BEV values, Solera Cap HPI said many electric models remain cheap compared with equivalent internal combustion engine cars, where direct comparisons are available.

July’s relatively modest 0.2% BEV decline also concealed some movement at the individual model level. Most models remained unchanged, while similar proportions increased and decreased in value.

Those recording increases rose by an average of 1.6%, compared with 2.6% in the previous month. Models that fell declined by an average of 2.8%, compared with 2.1% a month earlier.

New car pricing remains one of the pressures on younger used BEVs Discounts on recently launched electric models are expected to continue affecting used values.

Meanwhile, the Government’s Electric Car Grant adds another factor for those in the remarketing sector. At the time of Solera Cap HPI’s analysis, 59 models had been announced as eligible for the grant. Most qualified for £1,500, while 16 were eligible for the top £3,750 level, with six of those dependent on battery choice.

The wider used market is expected to soften from September, with increasing used vehicle volumes putting further pressure on values during the final quarter.

Solera Cap HPI expects movements to become slightly worse than normal seasonality as volumes rise, with that weaker performance against seasonal norms gradually increasing through 2027 before flattening out in early 2028.

For BEVs, however, the immediate outlook remains stronger. Electric cars are expected to continue beating the overall market in the short term, but the gap is now forecast to close progressively as the market moves towards the final quarter of 2026.