UK used car values were resilient during May despite rising stock levels and pressure on diesel and poorer-conditioned vehicles, according to Solera cap hpi.
Values at the benchmark three-year, 60,000-mile point fell 0.9%, equivalent to around £195. The movement was still ahead of seasonal norms, with the long-term average May-to-June movement sitting closer to -1.5% when excluding the COVID years.
Chris Plumb, head of current valuations at Solera cap hpi, said: “There are clear signs that demand for used BEVs has strengthened over recent weeks.
“Retailers are seeing more consistent consumer interest, and that is now feeding back into trade values as buyers return to the market with greater confidence.
“Some of the models that came under the greatest pressure earlier in the year are now starting to look particularly good value for money, which is helping stimulate retail demand.”
Battery electric vehicles (BEVs) delivered the strongest performance, with values at the three-year point rising by 1.2%, or around £220.
Of all BEV models assessed at the three-year point, 77% either increased in value or remained unchanged during May.
Among the strongest performers were the MG 5, up 6.5%, the Mini Cooper, up 6.4%, the Polestar 2, up 6.1%, and the Tesla Model 3, which also rose by 6.1%.
Diesel remained the weakest-performing fuel type, with values at the three-year benchmark falling by 1.9%, or around £420.
Running costs and weaker consumer demand are affecting retail appeal. Higher fuel prices are also continuing to influence consumer buying decisions.
Solera cap hpi expects the market to remain stable through June, although elevated stock levels are likely to maintain pressure on poorer condition vehicles and older diesel stock.
