Used car prices climb for first time since January

THE UK used car market bucked the traditional summer slowdown in August, with some retail values for three-year-old vehicles increasing for the first time since January, says Percayso Vehicle Intelligence.

Its latest figures show retail values for three-year-old cars saw a modest increase of 0.1% on average. While this equates to a rise of approximately £25, it marks a positive shift after a period of stability, Percayso says.

Notably, diesel vehicles led the charge with an average increase of 0.6% (around £100), a rise attributed to a significant reduction in supply coupled with sustained demand. Petrol cars also saw a healthy increase (up 0.4%), while hybrids edged up by a negligible 0.1%.

Electric Vehicles (EVs), although experiencing a slight drop of 0.2% or approximately £30, saw a less significant decline than in the previous month, with values varying considerably by model.

“It is interesting that diesel cars increased in value the most, pointing towards robust used demand for this fuel type that is ailing in the new car world.”

Derren Martin, automotive expert Tweet

“Whilst EVs did not go up in value overall, they only dropped by a negligible amount, and interest continues to increase, with the government grant piquing interest across the new & used arena.”

Standout brands for values

Land Rover was the standout brand, with values for its three-year-old vehicles surging by an impressive 3.7% in August, building on a strong increase in July, suggesting the brand’s resurgence following its well-publicised price adjustments over the last few years.

While Mini and Vauxhall also performed well, three brands saw negligible drops in value: Renault (-0.5%), BMW (-0.2%), and Kia (-0.1%).

The £10,000 to £20,000 price bracket saw the most significant value increase at the three-year-old age point, rising by 0.3%. In contrast, vehicles priced under £5,000 dropped by 1.3%.

While SUVs saw a small drop (0.2%), demand for small hatchbacks pushed their values up by 0.5%. MPVs were the strongest performers (up 3% or over £400 on average), as a result of their scarcity in the new car market and continued demand from families during the summer.