The used car retail market maintained strong momentum throughout August.
Car supermarkets remained the most aggressive in the market, raising advertised prices by 2% following a 1.5% boost in July, while main franchised dealers pushed values up by a steady 0.4% and independents returned to positive territory for the first time in several months, increasing prices by 0.3%.
According to the latest market data from Cazana, overall retailer margins were protected by sustained consumer demand for electric vehicles (EVs), hatchbacks, and premium brands.
At the standard 3-year age point, retail advertised values rose by an average of 0.5% (around £100), marking the largest monthly price increase recorded since May.
Retailers are increasingly treating alternative powertrains with parity as consumer acceptance of used EVs continues to mature.
Marking the fifth consecutive month of percentage growth for the segment, EVs rose by 0.6% (c.£130) at the 3-year point, with used EVs surging by more than £1,600 over the last five months as accessible price points drive buyer adoption.
In comparison, petrols, the core volume driver for forecourts, grew by 0.5%, hybrids increased by 0.4%, and diesel continued to soften, dropping by 0.7%.
The fastest-selling vehicles in August highlighted the strong appetite for electrified models, led by the Cupra Formentor e-Hybrid, Ford Kuga Vignale Hybrid, and Volvo XC90 PHEV.
Hatchbacks proved the standout category, with a 1.6% price increase, while saloons performed well, up 1.0%, but MPVs reversed recent downward trends to post a 0.2% rise. SUVs fell slightly by 0.3%, signalling clear profitability opportunities for retailers diversifying their forecourt inventory into non-SUV body styles.
Among vehicle manufacturers, Mercedes-Benz was the sole brand to achieve a price increase of over 2% in August, rising by 2.2%. Other strong brand performers included Ford (+1.9%), Renault (+1.7%), and Vauxhall (+1.6%). Land Rover remained the weakest performer at -0.3%, while most other manufacturers held relatively flat month on month.
Derren Martin, automotive expert at Cazana, said: “The used car retail market in August remained in good health, with many dealers nudging prices up, following a stable couple of months previously. The holiday period certainly does not seem to have adversely affected too many dealers. With trade values dropping again, margins are certainly being maintained or even increased overall.
“Hatchbacks continue to be great cars to invest in, whilst saloons also did well. It seems that dealers diversifying from standard SUVs can profit. Electric vehicles continue to increase in price and sell quickly. Whilst diesel cars weakened slightly in price, it appears dealers are treating cars of all other fuel types in a similar fashion to each other.
“We are now entering what could be a more volatile period for the car market, with franchise dealers focussing on new cars, with the 76 plate now launched. The Chinese brands in particular are keen to increase their volumes, leading to some tempting new car offers. With overall used car volumes increasing, there could be some pressure on values going forward, although it may not be until October that we start to see it. It will also be interesting to see what happens to the new Chinese brands’ used car values as their volumes start to ramp up.”
