Used car prices at car dealerships have barely moved in the last month as dealers hold their own in the face of reduced supply.
Data from used car valuations provider Percayso show that across car dealer forecourts price boards were adjusted by just 0.1% overall during August.
Speaking to Car Dealer Live in a video above, automotive consultant for Percayso, Derren Martin, said the market had been ‘really stable’.
Percayso looks at 800,000 used car prices across the internet on a variety of used car advertising platforms and dealer websites to give an accurate picture of used car values in showrooms.
Martin said diesel cars have performed the best during the month with their retail prices up 0.6%, petrol cars have gone up 0.4% and hybrids rose 0.1%.
Electric cars were the biggest fallers with dealers dropping their prices by 0.2% in August.
Martin was looking at cars around the three-year-old mark with around 30,000 miles on the clock to produce these figures.
In the video (top), he said: ‘It’s really stable. There’s lots of things going on under the surface, but it is a really stable market, which is really good.
‘Supply levels are not increasing dramatically. In that three-year-old cohort of vehicles, there’s still shortages from Covid and post-Covid, so those values have remained pretty strong. It’s been very stable all year.’
The tiny rise in values overall was the first time Percayso has seen a positive since January.
The Peugeot 208 lost the most money during the month, dropping 7.2% while the BMW iX3 – an electric car – rose the most with dealers increasing prices by 20%.
Top 10 Fallers – Cars
- Peugeot 208 -7.2%
- BMW 3 Series Hybrid PHEV -6.0%
- Kia Cee’d -5.4%
- Jaguar I-Pace EV -4.7%
- Kia Niro Hybrid -4.4%
- Audi A3 Sportback Hybrid PHEV -4.0%
- Volkswagen Tiguan -3.8%
- MG5 EV -3.8%
- Hyundai Tucson -3.5%
- Volkswagen ID.4 EV -3.4%
Top 10 Risers – Cars
- BMW iX3 EV +20.0%
- Skoda Enyaq IV EV +16.0%
- SEAT Ateca +8.2%
- Hyundai Ioniq 5 EV +7.8%
- Nissan Leaf EV +7.8%
- BMW iX EV +7.7%
- BMW 1 Series Hatchback +7.5%
- Volkswagen Golf +7.2%
- Kia Picanto +7.1%
- Audi A1 Sportback +7.0%
When it comes to brands, Renault models were down the most during the month with a fall of 0.5% while Land Rover saw its models leap 3.59% in August.
Martin added: ‘Strength has been Land Rover. They were the strongest performing manufacturer. I think they’ve just had so much pain over the last few years with prices that they now look really good value.
‘Mini has also done well, going up in value and, interestingly, the third one is Vauxhall.’
Top 5 Risers – manufacturer
- Land Rover +3.59%
- Mini +1.58%
- Vauxhall +1.20%
- Volvo +1.10%
- Toyota +1.05%
Top 5 Fallers – manufacturer
- Renault -0.5%
- BMW -0.2%
- Kia -0.1%
- Mazda -0.09%
- Nissan -0.08%
Martin said looking ahead to September, the month would be a critical one for used car values.
He added: ‘September is a pivotal month because of the new car registrations. It generates a lot of part exchanges, fleet returns and rental cars coming back.
‘We have had some pain in this sort of period over previous years, particularly 2022, 2023, but last year was pretty stable.
‘I think we’re in for some more stability as there’s still not an abundance of cars out there.
‘You’re never quite sure with Q4, but I would expect there to be some small drops, but nothing dramatic would be my prediction.’
Percayso data also showed car supermarkets continued their impressive performance, with prices increasing by 1.4%, mirroring trends from June and July, while independent dealers dropped used car prices by 0.5% and franchise dealers kept them the same.