The UK’s used car market remained strong in September, with average retail prices for 3-year-old cars climbing by 0.9% (c. £225), despite the industry’s traditional focus on new plate registrations.
The latest data from Percayso Vehicle Intelligence reveals a market buoyed by low stock levels, as a result of the shortages of cars at the 3-year age cohort, due to low registrations in the years following the COVID pandemic.
Percayso also reports strong trade values and a used car market in good health, helped by resurgent demand for diesel, MPVs, and Land Rover.
For the second consecutive month, Land Rover was the standout performer. Values for 3-year-old models surged by an average of 3.3% (c. £1,500), marking a near 10% increase in just 3 months.
This dramatic turnaround is partly attributed to new car supply issues following a cyber-attack, which has pivoted dealers and consumers towards the used market for a Land Rover. After significant price drops in recent years, the aspirational brand now represents compelling value.
Mercedes-Benz also performed strongly, with retail prices up 2.3%, followed by Mini, which rose by 1.9%.
September’s data also reveals a continued resurgence for diesel. As new vehicle supply dwindles, sustained demand, particularly in rural areas, saw average used diesel prices increase by an impressive 2.2% (c. £450).
In another significant shift, electric vehicles (EVs) recorded their first price rise of the year, increasing by 1.9% (c. £400) with petrol and hybrid models posting steady gains of 0.6% and 0.8%, respectively.
Key market trends include:
MPVs were the top-performing body style for the second month running, with values soaring by 4.8% (over £500) as buyer demand continues to outstrip the limited supply of new models
The sub-£5k price bracket, which saw falls last month, was the strongest performer in percentage terms, rising by 2%
Continuing a four-month trend, car supermarkets drove the market by increasing average prices by a significant 2.6%
Analysing the Percayso data, automotive expert, Derren Martin said: “September has proved to be another strong month in the used retail market, despite focus switching to new cars for the franchise dealer network.
“The big story of the month, though, is some good news for Land Rover, after the traumatic and worrying period they have had recently. It is great to see them as the best-performing used car brand in September.”
“Demand for electric vehicles is now increasing, with prices going up. This needs to continue on an upward trajectory as more and more will be returning to the used market.
“Moving forward, dealers will be glad to see more 3-year-old cars entering the market from the plate change. While retail prices can tend to fall as we enter the final quarter, if they do, it is unlikely to be to any great degree. The used car market remains in rude health.”
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