11:10 am, September 7, 2026
Used car dealers continued to push up retail prices in August as strong demand helped retailers maintain – and in some cases improve – their margins.
That is according to the latest data from Cazana – given to Car Dealer ahead of wider distribution – which found that advertised prices for three-year-old cars increased by an average of 0.5%, or around £100, during the month.
It was the largest monthly increase since May and came despite August traditionally being a quieter period as consumers head away on their summer holidays.
One-year-old cars performed even better, rising 0.7%, or around £180, while five-year-old stock edged up by approximately £30.
Ten-year-old vehicles were the exception, with prices slipping 0.4%.
Speaking on Car Dealer Live, automotive consultant Derren Martin said the retail market had remained resilient despite trade values softening.
‘It’s been another good month looking at the retail data,’ he said.
‘Trade values have dipped, but the retail market seems pretty strong.
‘It’s not been brilliant, but it has been pretty steady and people go on holiday and don’t necessarily look at cars, but overall I think the footfall has remained strong.’
Martin said the combination of falling trade prices and stronger retail values suggested dealer margins were improving overall, although he stressed there would be significant variation between individual retailers and vehicles.
Used EV prices rise for fifth month
Used EVs were once again among the strongest performers, with three-year-old electric cars increasing by 0.6%, or around £130.
It marked the fifth consecutive month of percentage growth, with Cazana’s data showing used EV values have now risen by more than £1,600 over that period.
Petrol cars increased by 0.5% and hybrids by 0.4%, while diesels fell 0.7%.
Martin believes more competitive used EV prices are helping the powertrain move firmly into the mainstream.
‘The prices of these used EVs look really reasonable now,’ he told Car Dealer.
‘They’re comparable with petrol cars, which is where they always needed to be. They were too expensive before.
‘What we’ve seen in August is that petrol, electric vehicle and hybrids have all gone up by similar percentages, similar amounts, because they are all similarly priced now.
‘The dealers are treating these cars as commodities on their forecourts. One isn’t an EV and one is a petrol car from a price point of view.’
Car supermarkets were particularly bullish during August, increasing advertised prices by 2%, following a 1.5% rise in July.
Franchised dealers raised prices by 0.4%, while independents recorded their first increase for several months at 0.3%.
Hatchbacks were the strongest body style, rising 1.6%, followed by saloons at 1%. SUVs slipped 0.3%.
‘Pressure’ coming for used car prices
Despite the strength of the market throughout the summer, Martin believes conditions could become more challenging as the year progresses.
The arrival of September’s new 76-plate is expected to bring increased numbers of part-exchanges and ex-lease vehicles back into the used market, while manufacturers are also offering aggressive deals on new cars.
Martin believes the effect could become particularly noticeable from October.
‘I can’t see anything other than pressure on used car values over the coming months,’ he said.
‘You’ve got all the new Chinese brands that are chasing market share, chasing volume, competing with each other.
‘They’re going to have used cars coming back as well. I’ve looked at the data on the used cars for the Chinese brands and it’s actually performing well at the moment.
‘Those cars are relatively stable, the prices. Can that continue when the new car offer is so good and they’ve got a lot of used cars coming back?’
He added: ‘There will always be a market for them, but it will be at a price.
‘The new car offers are very strong and there’s used cars coming back that will have to compete with those new car offers.’
Watch the full interview at the top of this story.