The UK used car market maintained steady momentum through July despite the summer holiday lull, according to the latest monthly market analysis from automotive data intelligence firm, Percayso Vehicle Intelligence (PVI).
Retail values for three-year-old vehicles dipped just 0.6% in July, a sign of sustained demand in a typically slower season. PVI noted that electric vehicles (EVs) stood out for their resilience, recording the smallest decline in average retail values — down only 0.3%.
In some cases, values even increased. “Electric vehicles have been the strongest performing fuel type with regard to retail price changes,” said automotive expert Derren Martin, citing strong consumer confidence and the influence of the newly announced government grant for new EVs.
One-year-old EVs were the only category to show value appreciation, up 0.4% on average. Among standout performers, the Nissan Leaf, Audi Q4 E-Tron, and MG ZS EV all posted price increases month-on-month.
Stock levels for three-year-old vehicles climbed to their highest point of the year, up 2.25% compared to June, although total advertised volumes across all ages slipped by 0.6%. “July has proved to be another stable month in the used car market,” Martin added.
Diesel vehicles fared worst in July, with average prices falling 1.75%, despite relatively low stock levels. Hybrids and petrol cars posted modest declines of 0.5% and 0.6% respectively.
Land Rover was a brand standout, with average prices for three-year-old models rising 1.8%. Mini and Nissan also showed strong value retention. In contrast, Audi, Kia, and Mercedes-Benz experienced the steepest declines, with average values falling between 1% and 1.5%.
SUVs remained the most advertised body type, representing 53% of listings, though they dipped 0.5% in value. Small hatchbacks continued to perform well, with prices easing just 0.2% due to solid demand and limited supply. Estate cars and MPVs recorded the biggest price drops at around 1.5%.
Consumer demand for affordability remained evident, with vehicles priced between £5,000 and £10,000 seeing slight price increases. The most popular mileage bands for three-year-old cars were evenly split between 20,000-30,000 and 30,000-40,000 miles.
Among dealer types, car supermarkets adjusted prices the least, averaging a 0.4% drop. Independent dealers made the largest downward moves at 1.5%, while franchise dealers posted a 0.6% reduction.
Looking ahead, Martin said: “Battery electric vehicles are certainly one to keep an eye on… Increased consumer interest in used EVs may counter-balance any impact of reductions of new prices on the used car market.” However, he cautioned that used EV pricing is likely to remain “particularly nuanced over the coming months,” and that “attention to detail on pricing is vital.”
