8:06 am, February 4, 2026
Used car prices surged in January as the market made a confident start to 2026, with dealers benefiting from healthy consumer demand.
Latest retail pricing data from Percayso Vehicle intelligence, released to Car Dealer early ahead of official publication, shows at the three-year age mark, average retail values increased by 0.9% (£180) – almost exactly mirroring the drops recorded in December.
January’s rise drew a line under a soft year-end where prices fell by 0.6% in November and just over 1% in December.
Speaking on Car Dealer Live, automotive consultant Derren Martin said the new year had begun positively, with January once again proving to be one of the busiest months for the trade.
‘January tends to be a month where people do go out and buy cars and the dealers like to stock up,’ he explained in the video posted at the top of this story.
Values increased across almost all age groups. Martin said dealers had been ‘pushing those prices up a little bit’, and retail prices were up by around 3%.
Even one-year-old cars, which can be affected by pre-registration activity and new car discounting, saw gains.
‘They’ve gone up a percent and a half, which is £450,’ Martin said, calling it ‘a good start to the year’.
The strength is being driven by a mix of necessity buying and pent-up demand after the quieter winter period.
Martin noted that while used cars are often essential purchases, January 2026 saw many buyers splashing the cash after delaying buying decisions until after Christmas.
‘A lot of it’s pent-up demand – people aren’t out buying cars in November onwards,’ he said. ‘Once we get out over Christmas, people go out and buy cars.’
Diesel models recorded the strongest increase by fuel type, rising almost 2% in January, driven by scarcity as fewer new diesels are produced.
‘Diesel cars went up by the most – there’s less of them around,’ Martin said, adding that demand remains strong for rural and long-distance drivers.
Hybrids closely followed with a 1.4% increase, while petrol cars rose by 0.8%.
EVs, which posted a 2% decline in December, showed signs of stabilisation.
While they were the only fuel type not to see an increase, their 0.1% decline suggests the sector is levelling out.
Martin noted MPVs and estate cars were the highest-growth cars in January, as buyers look ahead to the year and desire more practical wheels for holidays.
Audi was the standout performer in January, with three-year-old values increasing by 2.2%. Kia followed at 1.8%, while BMW, Skoda, Toyota, and Vauxhall all recorded increases of 1% or more.
Land Rover also stabilised after a weak final quarter in 2025, posting a modest 0.4% gain.
Looking ahead, Martin expects the momentum to continue into February.
‘February tends to be better than January for prices,’ he said, suggesting dealers could see further opportunities to increase margins as demand builds towards the spring plate-change season.
