Used car market sees second month of sector-wide growth

FEBRUARY marked the second month of growth in the used car market according to data from used car valuation and forecasting firm Cazana, with a significant upturn in advertised prices across the board.

Last month Percayso Vehicle Intelligence rebranded with the Cazana name.

Following a steady start in January, February saw a strengthening of retail values that spanned every age cohort, signalling a resilient appetite for second-hand stock despite broader economic pressures.

The most notable gains occurred at the three-year ‘sweet spot,’ where average values climbed by 1.7%, adding approximately £340 to retail tags. While younger, one-year-old vehicles saw a 0.7% increase, five-year-olds saw a 1.4% rise.

Cazana’s data suggests this particular spike for middle-aged stock may stem from a deepening shortage of vehicles originally produced during the pandemic-affected years. Even ten-year-old cars, often the bedrock of the budget market, saw a steady 0.5% value appreciation.

EVs still on the up

Perhaps the most telling shift in the February data is the universal price rise across all fuel types. Hybrids led the charge with a 2.3% increase, but it was the performance of electric vehicles (EVs) that caught the eye.

After a slight dip in January, used EV prices rose by 1.4%, suggesting they may now be increasingly viewed on equal footing with internal combustion engine (ICE) counterparts, with regard to forecourt pricing strategy, as they represent a larger share of the total market.

Estates see a jump in popularity

In terms of body styles, the market’s supply/demand dynamics favoured traditionally ‘unfashionable’ segments.

Estates saw a strong 3.4% price jump, followed by saloons at 2.5% and MPVs at 2%. These niche segments are currently suffering from lower supply, allowing proactive dealers to maximise margins.

Meanwhile, the dominant SUV and hatchback categories increased in price by 1.5% and 1.4%, respectively. Even the typical British February weather failed to dampen spirits, with dealers hiking convertible prices by 2.6% in anticipation of spring.

Mercedes-Benz emerged as the strongest-performing brand with a 2.6% price increase, followed by Citroen and BMW. For BMW, this marks the second month in a row in the top three, cementing its current desirability.

Conversely, a few major brands saw minor retreats; Volvo prices fell by 0.7%, while Audi slipped 0.6% following a very strong January performance. In the world of Tesla, the Model 3 and Model Y saw downward price adjustments of 2.1% and 0.6%, respectively. All retail channels saw a price increase.

Independent dealers led the way with a 2% average price increase, while franchise dealers and car supermarkets saw rises of 1.8% and 0.8%, respectively.

Derren Martin, automotive expert at Cazana, noted that the used car retail market has maintained its momentum exactly as predicted. He said: “The used car retail market has continued its strong start to 2026, as predicted, and there continue to be very few negatives as we enter the crucial month of March.

“It’s reassuring to see all fuel types experiencing price rises as EV volumes increase. It is still early days, and demand needs to keep increasing for these. Slightly more niche body styles nowadays look to be doing well for dealers, particularly estates. Opportunities exist to stock these and maximise prices.”

Derren Martin, automotive expert, Cazana Tweet

“March is obviously a key month in the new car arena, as the 26 plate gets launched, but volumes in the used car market won’t start appearing in larger numbers until towards the end of the month or even into April.

“Therefore, this month should be another steady one for the industry, with retailers continuing to push prices up where they can. It will be interesting to see whether the horrible situation in and around the Middle East, which is having a knock-on effect on oil prices, sending them higher, will affect the industry. In the past, when petrol prices have increased, it has led to more interest in used EVs.”