January used retail prices surge; diesel and hybrid best performers

THE used car retail market has started 2026 on a robust footing, according to the latest data from Percayso Vehicle Intelligence.

It says that January has seen average retail advertised prices climb across almost all sectors, driven by a surge in consumer demand and continued restrained supply.

Percayso’s latest data suggests the market saw an immediate reversal of the gentle declines seen at the end of 2025. At the critical three-year age point, average retail values increased by 0.9% (£180), almost exactly mirroring the drops recorded in December.

Younger stock saw even more significant gains, with one-year-old vehicles jumping by 1.5%, adding an impressive £450 to average advertised prices.

“There have been very few negatives to report on in the first few weeks of the year, and plenty of positives, particularly for those continuing to focus sales on petrol, diesel and hybrid cars.”

Derren Martin, automotive expert, Percayso Vehicle Intelligence Tweet

Diesel and hybrid strongest performers

Diesel vehicles were the strongest-performing fuel type in January, with prices increasing by 1.8%, driven by the growing scarcity of late-model diesel vehicles and sustained demand from long-distance commuters.

Hybrids followed closely with a 1.4% increase, while petrol cars rose by 0.8%. Electric Vehicles (EVs), which posted a 2% decline in December, showed signs of stabilisation. While they were the only fuel type not to see an increase, the marginal 0.1% decline suggests the sector is finding its floor after recent volatility.

The MPV returns to favour

MPVs recorded the highest growth among body styles, up 2%. As with holiday planning at the start of the year, consumers appear to be reviewing their long-term family needs. Estates also saw high demand, with prices up 1.7%, while hatchbacks continued their momentum from December, rising by a further 1.2%.

Despite dominating market volumes, SUVs saw a steady 0.9% price increase, while coupes and cabriolets posted the largest decline (-2.2%), though a “spring bounce” is anticipated as the weather improves.

From a brand perspective, Audi was the standout performer in January, with three-year-old values increasing by 2.2%. Kia followed at 1.8%, while BMW, Skoda, Toyota, and Vauxhall all recorded increases of 1% or more.

Land Rover also stabilised after a weak final quarter in 2025, posting a modest 0.4% gain.

Derren added: “EVs have not been subject to the same increases but at least have seen a stable month pricewise. Audi leads the way in price increases, and several more mainstream brands have also performed well.

“February is traditionally another strong month for used cars, before focus turns to the plate-change month of March, so there could well be some further increases seen over the next few weeks.”

The data further reveals a divide in pricing strategies: franchise dealers increased prices by an average of 1.2%, while independent dealers and car supermarkets saw slight average decreases.

Despite price hikes, retailers remain active in the market, with three-year-old stock volumes up approximately 9% month-on-month as businesses move to replenish forecourts in anticipation of a busy first quarter.