8:42 am, February 26, 2025
Franchised dealers focussing on used cars sales helped drive a 0.4% rise in prices in February, latest data shows.
New figures from Cap HPI show values of three-year/60,000-mile second-hand cars rose by £40.
The uplift marked a change from the 0.1% fall seen at the beginning of the year, hinting that the used car market is getting set for a strong period of demand and prices.
Used cars priced up to £5,000 saw the largest increase in value, up £60 or 1.8%. Vehicles priced between £30,000 and £50,000 remained stable at -0.1% (£60), and those over £50,000, saw a slight drop of 0.2% (£160).
Up-to-one-year-old cars edged up slightly by 0.1% thanks to manufacturers offering enhanced discounts to entice buyers.
Cap HPI said used electric car wholesale volumes continue to grow, with record month-on-month and year-on-year increases, but discounts on brand new EVs is putting pressure on newly-new models.
The data showed that used electric car prices declined across all the age and mileage profiles.
At one year and 10,000 miles, values dropped by 1.6% (£540), while at three years and 60,000 miles, the decline was also 1.6% (£350).
Five-year-old BEVs saw the steepest drop at 2.2% (£400).
The full list of the biggest used car risers and fallers is below.
Commenting on the figures, Chris Plumb, head of current car valuation at Solera Cap HPI, said: ‘With ongoing uncertainty in the new car market, particularly as private registrations remain subdued, some franchised retailers are placing greater emphasis on expanding their used car operations and strengthening their aftersales business to mitigate potential revenue pressures, which in turn increases competition for vehicles through wholesale channels.
‘The result has been upward pressure on values in recent weeks, marginally above the seasonal norms.’
He added: ‘The value movements reinforce a continued market focus on price-sensitive stock—vehicles that offer an attractive upfront cost or lower monthly finance payments.
‘With the arrival of the new ‘25’ plate from March 1, we anticipate increased volumes within the used car market as fleet returns and part-exchanges filter through.
‘At the same time, manufacturers are offering competitive new car deals —particularly on BEVs— as they push for market share and work towards their VETS targets.
‘However, any impact on used values is unlikely to be felt until April at the earliest, and even then, any downward pressure is expected to be moderate.’
Biggest Risers in % at 3-yrs 30k miles – Feb 25
1. BMW 2 Series Convertible (14-21) – 6.1% (£844)
2. Vauxhall Insignia Grand Sport (17-20) Diesel – 6.0% (£700)
3. Fiat 500L (13-22) – 4.9% (£404)
4. Citroen C4 Cactus (14-21) – 4.4% (£350)
5. Kia XCeed (19-21) Diesel – 4.1% (£500)
6. BMW 8 Series Gran Coupe (19-22) Diesel – 4.1% (£1550)
7. Hyundai Bayon (21-) – 4.1% (£475)
8. Mercedes-Benz CLA (19-) – 4.0% (£846)
9. SsangYong Korando (19-24) – 4.0% (£445)
10. Jeep Compass (17-22) Diesel – 4.0% (£462)
Biggest Fallers in % at 3-yrs 30k miles – Feb 25
1. Tesla Model X (19-21) – -7.8% (£-3475)
2. Mini Cooper Electric (19-24) – -6.9% (£-827)
3. Polestar 3 (22-) – -6.0% (£-3000)
4. Vauxhall Combo Life (21-) Electric – -5.9% (£-850)
5. SsangYong Rexton (17-24) Diesel – -5.0% (£-966)
6. Genesis GV80 (21-23) Diesel – -5.0% (£-1758)
7. Genesis G80 (21-22) Diesel – -5.0% (£-925)
8. Citroen Space Tourer (20-) Electric – -5.0% (£-956)
9. Fiat Tipo (16-21) Diesel – -4.9% (£-333)
10. Jaguar I-Pace (18-) – -4.7% (£-1000)
