Competition in the new car market is affecting used values, with manufacturer discounts and pre-registered stock putting pressure on nearly new prices.
That’s the view of cap hpi which reported used car values down 1.7% in October, equivalent to around £350, as rising wholesale volumes and discounting in the new car market put pressure on prices, according to Solera cap hpi.
Solera cap hpi expects further pressure on used values as wholesale supply increases towards the end of the year.
According to Vertu Motors CEO Robert Forrester, the UK is now firmly in a push market with widespread incentives or inducements to shift product.
“There is a significant increase in general pre-registrations, which is something we have not talked about in a few years. We are seeing the market distorted now by pre-registrations,” Forrester told Motor Trader.
Chris Plumb, head of current car valuation at Solera cap hpi, said: “We’ve seen more stock coming into the wholesale market during October, while attractive new car offers are making life harder for used car retailers.
“Buyers are still active at auction, but they’re being more selective about what they purchase and how much they’re prepared to pay. Cars are selling, although vendors are having to be more realistic about prices.”
Despite the wider decline, battery electric vehicles were the only fuel type to record an increase in values during October. BEV values rose by 0.6%, or £70, at three years and 60,000 miles. Hybrid values fell by 1.8%, plug-in hybrids by 1.9%, petrol by 2.2% and diesel by 2.6%.
Some electric models performed particularly well. The Vauxhall Mokka Electric rose by 4%, equivalent to £370, while the Kia e-Niro increased by 3% (£385), Peugeot e-2008 by 2.4% (£250) and Kia EV6 by 2% (£380).
Plumb said: “Used electric cars are performing well, particularly at the more affordable end of the market. Buyers are becoming more comfortable with the technology, and high fuel prices are encouraging more people to consider switching.
“What’s encouraging is that values are improving even as more electric cars enter the used market. Dealers are finding buyers for them, and they’re generally selling quickly.”
BEVs took an average of 32 days to sell at retail during October, compared with 35 days for petrol and 38 for diesel. Year-to-date BEV disposal volumes have already exceeded the whole of 2025 by 13%, yet electric cars continue to require fewer auction entries than any other fuel type.
Across 2026, BEV values have fallen by 4.7%, compared with declines of 8% for petrol, 9.9% for plug-in hybrids and 11.7% for diesel.
