Used car values in February saw a modest increase of 0.4%, equivalent to £40, at the three-year/60,000-mile benchmark, Solera Cap HPI has reported.

The market has seen upward pressure on values in recent weeks, marginally above the seasonal norms

The first uplift of 2025 was driven by a resilient retail market that has continued to support the wholesale sector, leading to largely positive trading conditions, in contrast to the concerns for the new car market.

Conversion rates stayed strong from January into February, consistently averaging between 70% and 80%. In some instances, sales exceeded these levels, with certain vendors, particularly in fleet sales, regularly achieving 100% conversions.

Dealer and part-exchange sales also performed well, again due to a high level of engagement from buyers. Car supermarkets, independent retailers and franchise dealers remained highly active, a positive indicator for this time of year.

But used BEV values declined across all the age and mileage profiles. At the one-year/10,000-mile mark, values dropped by 1.6% (£540), while the decline at the three-year/60,000-mile point was also 1.6% (£350). Five-year-old BEVs saw the steepest drop at 2.2% (£400).

Used BEV wholesale volumes continue to grow, with record month-on-month and year-on-year increases. However, rising supply puts pressure on specific models, and attractive new car offers further influence the market, making new BEVs more appealing than their nearly new counterparts. In many cases, the monthly PCP payment on a brand-new BEV remains lower than that of a used model, limiting the demand for younger second-hand examples.

February’s rise across the used car sector compares to an average seasonal movement of a small 0.3% uplift. Since the introduction of Cap Live in 2012, there have been only three instances where average values dropped marginally (2017, 2021, and 2022).

Chris Plumb, head of current car valuations at Solera Cap HPI, said: “With ongoing uncertainty in the new car market, particularly as private registrations remain subdued, some franchised retailers are placing greater emphasis on expanding their used car operations and strengthening their aftersales business to mitigate potential revenue pressures, which in turn increases competition for vehicles through wholesale channels. The result has been upward pressure on values in recent weeks, marginally above the seasonal norms.”

Looking at the differences per price band, the most significant gains in percentage terms were seen in vehicles priced up to £5,000, which increased by 1.8% (£60), followed by a 1.3% (£90) rise for those between £5,000 and £10,000, and a 0.7% (£85) increase for models in the £10,000 to £15,000 range.

All other price bands recorded increases, except for vehicles priced between £30,000 and £50,000, which fell 0.1% (£60), and those over £50,000, which saw a slight drop of 0.2% (£160).

At one-year-old, values edged up slightly by 0.1%. With manufacturers offering enhanced discounts to entice buyers, it’s no surprise that values have remained steady, though variations exist across different fuel types.

Chris Plumb concluded: “With the arrival of the new ’25 plate from 1 March, we anticipate increased volumes within the used car market as fleet returns and part-exchanges filter through. At the same time, manufacturers are offering competitive new car deals – particularly on BEVs – as they push for market share and work towards their VETS targets. However, any impact on used values is unlikely to be felt until April at the earliest, and even then, any downward pressure is expected to be moderate.”