The UK’s used car retail market saw a 10% increase in stock volumes while maintaining an upward trend in pricing in March.
Data from Cazana shows that retailers have successfully defended their margins, with advertised prices across most age brackets continuing to climb, against the volatility of fuel costs and economic uncertainty.
Automotive expert Derren Martin said: “The used car retail market has remained strong, despite the outside pressures on fuel prices and general cost of living concerns from the war in the Middle East. Even with volumes increasing, dealers seem keen to maintain prices and margins.
“It is perhaps surprising to see petrol and diesel values increasing, and EVs only staying level. This could change over the coming months as more consumers consider switching to an electric car, with an eye on charging costs compared to filling up at a petrol station.
The three-year-old sector saw values rise by 1%, adding an average of £200 to retail tags, a move mirrored by younger, one-year-old stock, which saw a £260 increase.
Mid-aged vehicles remained steady while the ten-year-old segment saw prices soften by 1% (about £75).
Premium marques continue to dictate the pace of the market. BMW and Mini were the top performers in March, seeing average price increases of 3% and 2.8%, respectively.
This marks BMW’s third month in a row in the top three for price growth. Mercedes-Benz followed closely with a 1.8% rise while Land Rover and Audi saw marginal decreases.
Despite petrol and diesel prices approaching £2 per litre and £1.60 per litre respectively, in some areas, traditional internal combustion engines continued to see value growth.
Main dealers and car supermarkets were the most active in nudging prices upward, while independent retailers kept their valuations largely level.
Hybrids led the sector with a 2% price hike, followed by a 1% rise in petrol and diesel car prices, and electric vehicle values remained flat.
