Used car values outperform seasonal norms despite events

IN June the UK used car market once more proved resilient, despite political turbulence, ongoing economic uncertainty and the distraction of the FIFA World Cup, says Solera cap hpi.

Trade values holding up better than seasonal expectations and demand remaining broadly stable across much of the retail sector.

Latest Solera cap hpi data shows average trade values at the benchmark three-year, 60,000-mile point fell by just 0.6% during June, equivalent to around £130. The decline was considerably gentler than the long-term June average fall of around 1.1%, underlining the relative strength of today’s used car market.

The performance marks the third consecutive month in which used values have outperformed seasonal norms, suggesting the market has found a degree of stability after several years of volatility. Retail demand remains, although dealers continue to report that consumers are selective, measured, and focused on value.

Sales activity through June broadly matched seasonal expectations, with average days to sell edging up from 33 days in May to 34 days month-to-date. Performance continues to vary by retailer type. Car supermarkets remain the fastest-moving operators, averaging 29 days to sell stock, followed by franchised dealers at 31 days. Independent retailers continue to face a more mixed trading environment, with stock taking around 42 days to sell.

While many dealers would welcome stronger demand, the market remains active enough to support a healthy stock turn where vehicles are bought well, priced accurately and represent clear value.

Jeremy Yea, Senior Valuations Editor at Solera cap hpi (pictured) said: “The used car market continues to show a level of resilience that is stronger than we would normally expect for this time of year. Retail demand remains measured rather than buoyant, but consumers are still buying when vehicles are priced correctly and offer clear value.

“What has become increasingly noticeable is the improving position of used electric vehicles. We’re seeing stronger retail demand, improving wholesale conversion rates and growing evidence that buyers are becoming more comfortable with EV ownership. In some areas, demand is now beginning to outpace supply, which is helping support values.”

Jeremy Yea, Senior Valuations Editor, Solera cap hpi Tweet

In June EVs were the strongest-performing fuel type in both retail and wholesale channels. Used EVs sold in an average of 29 days, making them the fastest-moving drivetrain in the market. At the same time, three-year-old EV values increased by 0.8%, the second consecutive month of positive movement and one of the strongest performances seen since late 2024.

“That doesn’t mean every EV will perform equally well,” Yea added. “The market remains highly selective and success still depends on factors such as age, range, specification and price point. However, the overall direction of travel is considerably more positive than it was six to 12 months ago.”

Diesel remained the weakest-performing fuel type, with values declining by 1.4% at the three-year point. Older vehicles also faced greater pressure, reflecting increasing volumes of higher-mileage stock entering remarketing channels.

Looking ahead, Solera cap hpi expects July trade values to broadly follow traditional seasonal patterns, although demand for desirable three-to-five-year-old vehicles is expected to provide ongoing support.