The used car retail market continued its growth streak through May, defying the traditional bank holiday seasonal slowdown as electric vehicles and premium saloons propelled growth. New data
The used car retail market continued its growth streak through May, defying the traditional bank holiday seasonal slowdown as electric vehicles and premium saloons propelled growth.
New data from Cazana shows that average three-year-old retail values ticked upward for the fifth consecutive month this year, rising 0.7% (c.£170) last month. Five-year-old cars rose 0.6% (around £80), while one-year-old vehicles held level and older 10-year-old stock saw a negligible 1% dip (c.£75).
Alternative fuel vehicles dominated the market for the second consecutive month. Used values for battery electric vehicles (BEVs) rose by 1.2%, building on a 1.1% gain in April. Meanwhile, hybrids increased by 0.8%, marking a cumulative 4% growth over the last 60 days.
Propelled by high pump prices amid the Middle East war, BEVs have officially become the fastest-selling fuel type on the market, turning over 20 days quicker than equivalent diesels and 10 days quicker than petrol cars.
At the critical three-year-old mark, high-volume BEVs are “flying off forecourts”, according to Cazana:
Performance saloons and estates continued their stellar 2026 run, with saloons jumping another 2.3% in May following a 5% surge across March and April, and estates rising 0.3% off the back of a prior 5% two-month increase.
Conversely, MPVs dropped for the third consecutive month, falling 1.6%, while convertibles and coupé-cabriolets predictably rose 1.6% as summer weather took hold.
Brand-by-brand analysis reveals an impressive turnaround for Volvo, which emerged as the strongest manufacturer at the three-year age point with a 2.8% value increase (nearly 6% in two months). Audi (+2.2%) and BMW (+1.8%) also posted strong gains, while Kia (-0.7%) and Ford (-0.2%) lagged slightly behind.
Derren Martin, automotive expert, said the continued strength in the used car retail market aligns with the trend seen since the start of the year.
Dealers were keen to raise prices, increasing margins as they did so, as trade values fell, on average.
“May is one of the traditionally slower months in the year for used car sales, due to bank holidays taking consumers away from browsing for a used car, but even with the great weather we had in the month, the market remains in good health.”
Martin also noted the current divergence between falling trade (wholesale) values and rising forecourt retail prices, which “creates a profitable sweet spot for agile retailers”.
He advised dealers to aggressively target fast-turn EV stock, such as the MG4 and Cupra Born, to maximise asset turnover.
Martin added that with three-year-old stock volumes flattening from April into May, sourcing premium German saloons (BMW/Audi) and resurgent Volvos will be highly competitive. He suggested dealers must buy quickly when these units appear in wholesale channels, as consumer demand currently outstrips supply.
The fresh data from Cazana comes as the newly relaunched brand targets fleets, finance firms and leasing providers, alongside traditional automotive dealers and OEMs, with significantly enhanced intelligence capabilities.
Solera Cap HPI has also reported that battery electric vehicles are showing increasing signs of stability. Its new data shows that used BEVs aged between three and four years are currently selling around six days faster than equivalent petrol models. But the company says there are clear winners and losers emerging on the used vehicle market. The strongest performers are largely established, mainstream models with growing consumer recognition.
And Brego says used BEVs are selling quickly when price, age and model desirability align. The first edition of the company’s Fastest Five, a new monthly snapshot of the quickest-selling vehicle derivatives across key market segments, shows that BEVs featured strongly among the fastest-moving used cars in May 2026.
