7:07 am, July 29, 2026
Used car values fell again in July with average trade prices dropping by 0.7%.
The latest data from Cap HPI show was labelled as ‘the traditional summer slowdown’, but it was the fourth month in a row where used car values have ‘outperformed seasonal norms’.
Average trade values at the benchmark three-year, 60,000-mile point fell by around £140 during the month.
While prices continue to ease, the 0.7% reduction compares favourably with the long-term July average decline of 1.0%.
The latest figures continue a run of stronger-than-expected performance, with Cap HPI saying only five Julys since Cap Live was introduced in 2012 have seen smaller seasonal declines, excluding the distorted Covid period.
However, beneath the headline figures the valuation experts say the used car market is becoming increasingly divided, with buyers becoming far more selective about the stock they are willing to purchase.
Clean, retail-ready vehicles continue to attract strong demand, while older, higher-mileage examples are proving much harder to sell.
Chris Plumb, head of current car valuations, said: ‘The headline movement only tells part of the story.
‘Clean, retail-ready vehicles continue to attract strong demand, but older, higher-mileage stock is proving much harder to place.
‘Values have held up well despite the increase in supply during the first half of the year. Buyers are still active, but they’re choosing stock much more carefully than they were 12 months ago.’
The biggest falls continue to be seen among older vehicles.
Values for five-year-old cars with 80,000 miles dropped by 1.5% during July, while 10-year-old vehicles with 100,000 miles fell by 2.8%.
The valuations experts said rising wholesale volumes, particularly from part exchanges, combined with increasing preparation costs and softer retail demand for cars requiring refurbishment, were all contributing to the decline.
Diesel down
The market also continues to show significant variation between fuel types.
Diesel recorded the weakest performance for the third consecutive month, with values down 1.1% at the three-year benchmark.
Hybrids were the strongest-performing fuel type, edging up by 0.3%, while battery electric vehicles slipped by just 0.2%, leaving them ahead of petrol, diesel and plug-in hybrids.
Plumb said: ‘Demand for well-priced used EVs remains healthy, although the exceptional gains seen over the past couple of months are beginning to level out as supply improves for some models.
‘Hybrids also continue to perform well as buyers look for lower running costs without making the move to a fully electric vehicle.
‘The biggest challenge is still older stock. Higher volumes, greater preparation costs and tighter retail margins mean buyers are concentrating on vehicles they can turn around quickly.’
Looking ahead, Cap HPI expects the market to continue following normal seasonal patterns through August, with demand for well-prepared three- to five-year-old vehicles remaining firm.
However, the company believes older, higher-mileage stock is likely to remain under pressure as retailers continue to focus on faster-turning, retail-ready vehicles amid tighter margins.
The findings echo recent data from Autotrader, which found the used car market remained resilient during June despite the traditional seasonal slowdown.
The marketplace reported average retail used car prices were up 0.8% year-on-year – the strongest annual growth since August 2023 – while transactions rose by around 1% and the average used car continued to sell in around 30 days.
Autotrader also reported a turnaround in the used EV market, with second-hand electric car prices rising annually for the first time since December 2022.
However, like Cap HPI, it found market conditions varied significantly by vehicle type and age, highlighting particularly strong demand for older petrol cars and well-priced electric vehicles.