Traditional fleet brands lead value retention as used market weathers pre-Christmas slowdown

THE used car market remained strong throughout November, weathering the typical pre-Christmas slowdown with only minor value adjustments, according to the latest data from Percayso Vehicle Intelligence.

Following two months of price increases in September and October, the market saw a gentle cooling, with three-year-old vehicle values dropping by just 0.6%, equivalent to a negligible £140.

According to Percayso, prices at the one-year-old age point saw a slightly larger dip of just over 1%. However, for this time of year, this remains a strong performance, indicating underlying health in the sector.

‘Throwback in time’ for brand performance

In a surprising “throwback in time,” traditional mass-market brands led the field in value retention.

Vauxhall was the strongest performer, with values actually increasing by 1.7% at the three-year age point.

Ford was the second strongest, rising by 0.7%, followed closely by Toyota at 0.5%, suggesting a stable month for these affordable, high-volume brands.

Conversely, luxury marques Land Rover and Volvo saw the most significant declines, both dropping by around 1.5%. Land Rover appears to have peaked after its summer highs, while Volvo’s values may be pressured by increased volumes of competing pre-registered stock.

Powertrain and sector analysis of November's used car market

Percayso’s data shows conventional powertrains had the greatest stability, with petrol and diesel values dropping by the least – just 0.2% (around £50). Electrified vehicles saw slightly larger adjustments, with Hybrids falling by the most at 1.1%, and EVs dropping by 1% (£180).

Key market trends include:

EV corrections: Within the EV segment, the Tesla Model 3 remained flat on average, while the Model Y dropped by 1.5% – a necessary correction as larger volumes enter the market, making them increasingly well-priced for used buyers.
Body style shifts: Estates continued to present a strong profit opportunity, rising by 0.3% thanks to their scarcity. SUVs corrected by 0.8%, mirroring the increase they saw in October, while MPVs saw the steepest decline at 3%, suggesting they are increasingly becoming a seasonal purchase.

Retail pricing: Across the retail landscape, all dealer types adjusted their advertised prices. Independents dropped the most, by approximately 1%, in a clear push to clear stock quickly. Overall, three-year-old stock volumes remained flat compared to the previous month.

Industry outlook for used values

Commenting on the latest Percayso data, automotive expert Derren Martin said:

"The used car retail market remains in a good place, with just negligible drops in advertised prices this month. It is normal for retailers at this time of year to avoid overstocking and take only a small amount of pricing action, as most consumers focus on the cost of the festive season rather than making an expensive purchase. Dealers will now have an eye on January, when the market is traditionally strong."

Martin noted that while the recent government announcement of a pence-per-mile tax on EVs from 2028 creates some unwelcome uncertainty, it is unlikely to deter many consumers already considering making the switch, given the low taxation rate. The total cost of ownership of EVs still makes them an attractive proposition.

With November proving to be relatively strong, December is likely to be slow, as usual, but prices are unlikely to decline greatly, added Martin, who reckoned dealers were eagerly anticipating an increase in demand in the new year.