Hybrids and EVs Are Shifting in Price—What the Latest Used Car Data Show Heading Into 2026

Core Insights - Used car pricing is experiencing seasonal movements with significant changes in hybrids and electric vehicles (EVs) as of early 2026 [2][4] - The December 2025 data indicates a reset in pricing dynamics for hybrids and EVs, driven by demand shifts and supply changes rather than just seasonal factors [3][10] Pricing Dynamics - December is historically a volatile month for used car pricing due to dealers' calendar-driven sales goals, leading to increased negotiation flexibility for buyers [5][6] - Hybrids and EVs saw the largest price declines among used vehicles in December, indicating a broader market adjustment rather than typical seasonal changes [7][10] Demand and Supply Factors - The end of tax incentives for clean vehicles after September 30, 2025, led to a decrease in buyer urgency, resulting in softened demand and less pricing power for dealers [8][9] - The used hybrid and EV market is expected to remain competitively priced in 2026 due to the absence of incentive-driven demand and increasing inventory [10][12] Year-over-Year Trends - Despite a decline in December, used hybrid and EV prices were still up 2.1% year-over-year, although this increase lagged behind overall inflation of approximately 2.7% in 2025 [11]