At a glance:
- The average retail margin of alternative fuel vehicles (AFVs) for the year rose to £3,120, an 8% increase on 2024
- Younger, lower-mileage electric vehicles (EVs) proved popular
- Fisker Ocean EV topped the profit chart for 2025 with an average margin of £6,642
- EVs took up 40% of the annual AFV profit chart for the first time, with Tesla performing well
- New and upcoming EV tax changes, and an urge for government to reassess new EV retail targets, possibly shaping used EV sales in 2026
In the annual round-up of Dealer Auction’s EV Performance Review (EVPR), alternative fuel vehicles (AFVs) delivered an impressive average retail margin of £3,120 for the year – up from £2,870 in 2024. This 8% rise highlights their continued profitability despite wider market pressures.
Although AFVs still represent a small proportion of the market – 7.3% on the Dealer Auction platform – this was a marked rise from 5.6% in 2024, showing that dealers are tapping into the profit potential of this segment.
The overall age and mileage profile of AFVs also sat firmly in the younger categories, averaging just 2.5 years old with 26,262 miles, comparing favourably against the average of 4.3 years and 39,103 miles from 2024. This shift towards younger stock was reflected across all fuel types on Dealer Auction in 2025; however, AFVs were much younger than the overall average of 7.2 years – to be expected when many AFVs are more recent market entries.
These metrics come as the used car market enters its next phase of post-pandemic adjustment, with the historic new-car shortfall continuing to move through the parc, reshaping the 3- to 5-year-old segment. As mid-aged ICE supply tightens, Dealer Auction’s platform review shows that nearly new AFVs are becoming an increasingly important route to quality stock.
Dealer Auction’s Marketplace Director, Kieran TeeBoon, said: “Despite uncertainty surrounding EV tax changes and sale targets in the new EV sector, used EVs have continued to deliver strong margins and fast selling times in 2025. Demand is clearly concentrated around younger stock, giving dealers a profitable opportunity when vehicles are priced and positioned correctly.”
Looking to the best performing trade-to-trade models of 2025, the all-electric Fisker Ocean topped the chart for profits, followed by the Range Rover hybrid and BMW X5 hybrid.
The Tesla Model S and Model X EVs also emerged as strong performers. This marked a big change for the most profitable AFVs: four of the top 10 models for 2025 were EVs, whereas 2024’s top 10 chart was 100% hybrid.
The top-selling AFVs of the year were the Nissan Qashqai, Hyundai Tucson and Toyota Yaris hybrids, with the only EV in the top 10 being the Nissan LEAF in eighth place.
All models in the top 10 for CAP Clean performance soared over 100%, with the three most competitively priced being the Honda CR-V (108.2%), Mercedes-Benz E-Class (105.3%) and Lexus ES (105.2%) hybrids. Once again, only one EV made the chart: the seventh-place Kia EV3 (102.5%).
Looking more closely at the final monthly data for the year, December 2025 once again proved to be a strong period for the hybrid-powered Volvo XC90, which topped the profit charts for the seventh consecutive month (£5,281). This final surge earned it fourth place overall in 2025. Meanwhile, the all-electric Tesla Model 3 performed strongly both in margin (£3,002) and being the most competitively priced against CAP Clean (96.4%).
Even though more new EVs were registered in 2025, there has been some pushback when it comes to sales. The Society of Motor Manufacturers & Traders (SMMT) is urging the UK government to bring forward a review of the zero emission vehicle (ZEV) mandate, because the current targets are unachievable.1
A potential review of the ZEV mandate in 2026 could prove critical in aligning policy with market reality – supporting a more sustainable transition to electrification without undermining confidence across the automotive retail sector.
TeeBoon concluded: “While the ZEV mandate remains a challenge for the industry, real-world performance data shows that EVs are firmly established in the used market. As we move into 2026, flexibility in policy and a focus on consumer-led demand will be key to sustaining momentum and dealer confidence.”
Source
1Roberts, G. (2026). ‘Unachievable’ EV targets need review as new car sales hit two million. Available at: www.fleetnews.co.uk/news/-unachievable-ev-targets-need-review-as-new-car-sales-hit-two-million (Accessed: 9 January 2026).
About Dealer Auction
Dealer Auction is the UK’s leading digital remarketing platform. We give buyers and sellers more choice, better insight and greater margins. Dealer Auction is an independent company, created through a joint venture between Cox Automotive and Auto Trader. For more information, visit www.dealerauction.co.uk.
Launched in May 2024, Dealer Auction’s EV Performance Review (EVPR) is a monthly feature that tracks the performance and trends of EV and hybrid vehicles on the UK’s leading digital remarketing platform.
