Used car values held steady overall in March, with the three-year, 60,000-mile benchmark recording no change, according to the latest data from Solera cap hpi. However, beneath the headline figure, fuel type performance continued to diverge.
Battery electric vehicle (BEV) values fell by 1.7% or £320 – the fourth consecutive monthly decline. By contrast, petrol and hybrid vehicles recorded modest increases. At the three-year mark, petrol vehicles rose by 0.3% (£45) while hybrids gained 0.4% (£70). Diesel values remained flat, and plug-in hybrids slipped by 0.2% (£60).
Chris Plumb, head of current valuations at Solera cap hpi, said: “With the latest reduction in values for BEVs, this now marks the fourth consecutive month of negative adjustments. Over the past 12 months, only two months, October and November, saw stable values, with BEVs being the strongest-performing fuel type during that time.”
He added: “The BEV market continues to be quite fragmented, with performance varying from one model to another, which means we need to keep a close eye on each individual model. Looking at the numbers for three-year-old vehicles, we saw that 57% of models experienced value reductions, while 37% managed to hold steady (up from last month’s 30%). On the brighter side, 6% actually saw positive adjustments! And despite a wave of negative media coverage, the Tesla Model Y held steady, while the Model 3 dipped by just 1% or £163, which is slightly better than the average for all BEVs this month.”
Values remained largely consistent across different vehicle ages. One-year-old vehicles fell by just 0.3% (£125), while five-year-old cars rose 0.2% (£20). Ten-year-old vehicles dropped by only 0.1%, or £5.
Retailers are continuing to feel the squeeze on profit margins. Although trade values are strong, many businesses are finding it difficult to replace key stock, particularly clean vehicles aged three to five years. Stock shortages are contributing to a pattern of cautious, piecemeal sourcing, often at higher prices.
Retailers remain understocked, with many favouring a ‘little and often’ acquisition strategy to meet ongoing consumer demand. This is keeping wholesale markets competitive, particularly as many traders target financial year-end volumes. The three- to five-year vehicle supply gap continues to bite, forcing dealers to broaden their sourcing methods and retain more part-exchange stock.
Plumb said: “The shift over the month has been the increasing selectivity of buyers regarding older, high-mileage vehicles. The trend suggests that these cars may not be as appealing as they once were, likely due to the price increases we’ve seen recently. This evolving buyer behaviour highlights the dynamic nature of the market and the importance of adapting to changing preferences!”
