New car discounts and rising wholesale volumes are putting downward pressure on used car prices, according to Solera Cap HPI. The market analysis firm reported that used car values for vehicles aged three years and 60,000 miles dropped by 1.7% in October, which amounts to a loss of roughly £350.
This decline exceeded the typical seasonal average of 1.4%. The movement marks one of the weakest November valuations on record. Trade volumes for cars aged three to five years were nearly 20% higher than the same period last year, giving dealers more options at auction.
Competition in the new car market is also affecting nearly new prices. Manufacturer discounts and the availability of pre-registered stock are challenging used retailers. Chris Plumb, head of current car valuation at Solera Cap HPI, noted that attractive new offers are making life harder for used car dealers.
Buyers remain active at auction but are being more selective about what they purchase and how much they are prepared to pay. Cars are still selling, but vendors are having to be more realistic about asking prices.
Electric Vehicle Gains
In October, battery electric vehicles bucked the trend of declining fuel prices, with their values increasing by 0.6%, which translates to £70 at three years and 60,000 miles, despite a broader downturn in the market.
Certain electric models stood out for their strong performance, including the Vauxhall Mokka Electric, which saw a 4% rise, equivalent to £370, and the Kia e-Niro, Peugeot e-2008, and Kia EV6, which increased by 3%, 2.4%, and 2%, respectively, with corresponding price jumps of £385, £250, and £380.
Plumb attributed this strength to higher fuel prices and growing buyer comfort with the technology. He stated that values are improving even as more electric cars enter the used market. Dealers are generally finding buyers for these vehicles, and they are selling quickly.
Year-to-Date Trends
During October, BEVs took an average of 32 days to sell at retail, compared with 35 days for petrol and 38 for diesel. Year-to-date, BEV disposal volumes have already exceeded the whole of 2025 by 13%, yet electric cars continue to require fewer auction entries than any other fuel type.
Throughout 2026, the value of battery electric vehicles has decreased by 4.7%, a relatively modest decline compared to the 8%, 9.9%, and 11.7% drops experienced by petrol, plug-in hybrids, and diesel vehicles, respectively. Solera Cap HPI expects further pressure on used values as wholesale supply increases towards the end of the year.
