Used car market shows resilience in early 2025, according to latest Percayso Vehicle Intelligence data
- Petrol and Diesel: Values are gradually decreasing
- Electric Vehicles (EVs): Values are decreasing more significantly than petrol or diesel. Stock levels are rising as vehicles are not selling as quickly, indicating supply is outstripping current demand
- Hybrids: Values are increasing, and stock levels are stable, marking hybrids as the strongest performing segment overall
Retail values remain robust despite slight adjustments and the supply of 3–4-year-old cars is still being impacted by historical factors, according to the latest analysis from Percayso Vehicle Intelligence (PVI), the Automotive data intelligence specialist.
The UK’s used car market has demonstrated notable resilience in the year to date, with data revealing a strong retail environment, particularly for hybrid vehicles.
While overall retail values for popular 3–4-year-old cars (under 75,000 miles) have seen a minor dip of 1.5% YTD, this figure underscores continued market strength, heavily influenced by an ongoing shortage of vehicles in this age bracket.
Stock levels for these 3–4-year-old cars, have been rising since March. Valuations in the retail sector saw increases in January and February, with February being the strongest month, mirroring trends typically observed in the trade market. A slight dip in March, followed by a more noticeable 1.6% decrease in April, contributed to the overall 1.5% YTD drop.
However, automotive expert, Derren Martin, analysing the latest data from Percayso Vehicle Intelligence, asserts that this still points to a very robust market.
He said: “The overall minor adjustment in values for 3–4-year-old cars is a testament to the persistent shortage stemming from the COVID-19 pandemic’s impact on new car production,” commented senior market analyst.
“Furthermore, with the new car market continuing to underperform in comparison to pre-COVID times there are approximately three million fewer used cars in circulation than we would typically expect. Despite increasing stock levels now, this fundamental supply constraint continues to support values.”
“The market for late plate vehicles (2024-2025 registrations) has shown particular strength, with values increasing by 2% YTD. This segment is experiencing less pressure from pre-registered vehicles, and the recent relaxation of ZEV (Zero Emission Vehicle) mandate targets has also eased pressure on these nearly new models. While volumes are increasing, as expected with the arrival of new registration plates, values are holding up well, with only a negligible softening observed in April.”
Hybrid vehicles have emerged as the star performers in both the retail and trade markets. Valuations for hybrids (including pure and plug-in hybrids) have increased by nearly 4% YTD, largely driven by strong performance in January and February. Volumes have remained steady since January.
Derren added: “Hybrids are proving to be the sweet spot for many consumers who are keen on electrified motoring but not yet fully prepared to transition to a full battery electric vehicle (BEV). Their consistent performance highlights a clear and sustained consumer demand.”
The electric vehicle (EV) segment continues to be the most challenging area of the used car market. While advertised volumes of used EVs are increasing, indicating more dealers are stocking them, values have been volatile. After a slight rise in January, EV values have generally been dipping, albeit with small movements.
Derren continued: “Percayso’s latest data underscores the difficulty in summarising EV valuation trends succinctly. Some models now represent excellent value compared to their internal combustion engine (ICE) counterparts, while others still appear expensive. A granular, model-by-model assessment is crucial in the EV space. Despite falling values and increased stock on forecourts, consumer demand for used EVs is not yet keeping pace with the growing supply.”
“Looking at the year so far, it’s clear that while the headline figure shows a slight cooling, the used car market is navigating complex dynamics with underlying strength. The differing fortunes of EVs and hybrids, set against a backdrop of constrained supply for younger used cars, will continue to shape the market in the coming months.”
Derren Martin, consultant analyst, Percayso Vehicle Intelligence (below)
