A sustained recovery in electric vehicle values and an unexpected August price rise have boosted fleet defleet prospects and residual values, Cazana reports.

The latest market analysis from the automotive data expert shows advertised prices at the key three-year ex-fleet milestone rose by an average of 0.5% (around £100) in August. The rise defies traditional summer seasonality and marks the highest rate of monthly price appreciation seen since May.

Younger ex-fleet inventory also saw strong retail demand, with one-year-old values advancing 0.7% (£180) despite aggressive new vehicle promotional activity.

For fleet managers planning end-of-contract defleet volumes, the figures demonstrate that retailer demand remains firm across core fleet age profiles, even as trade values soften, creating strong margin retention across buyer networks.

In a notable shift for corporate fleets managing electric vehicle rollouts, used EVs at the three-year mark are experiencing sustained retail value recovery.

EVs advanced by about £130 at three years old in August and EV values have now risen by around 7.5% (over £1,600) in the last five months. The rise is driven by strong consumer demand as real-world retail pricing aligns with buyer expectations.

In contrast to the EV recovery, traditional powertrains showed mixed results. Petrol and hybrid vehicles maintained steady monthly gains of 0.5% and 0.4% respectively, while diesels continued their downward trend, dropping 0.7% month-on-month. Retailers are now treating petrol, hybrid, and electric powertrains with near-identical pricing confidence.

Demonstrating the strong appetite for electrified ex-fleet inventory, the fastest-selling vehicles in August were dominated by plug-in hybrid powertrains: the Cupra Formentor e-Hybrid, Ford Kuga Vignale Hybrid and Volvo XC90 PHEV.

An analysis of body types reveals that retailers are actively seeking non-SUV inventory to diversify their forecourts. Hatchbacks saw the largest retail price increase in August, jumping 1.6%, while saloons grew by 1.0%. MPVs reversed recent downward trends with a modest 0.2% increase, whereas SUVs dropped slightly by 0.3%.

At a brand level, Mercedes-Benz led manufacturer price performance with a 2.2% increase in August. Fleet mainstays Ford (+1.9%), Renault (+1.7%), and Vauxhall (+1.6%) also posted strong month-on-month growth. Land Rover was the primary outlier among premium brands, falling 0.3%.

Derren Martin, automotive expert at Cazana, highlighted that the holiday period failed to disrupt dealer momentum.

“The used car retail market in August remained in good health, with many dealers nudging prices up, following a stable couple of months previously,” Martin said.

“With trade values dropping again, margins are certainly being maintained or even increased overall,” he added.

For dealers, Martin also noted that hatchbacks continue to be great cars to invest in, whilst saloons are also faring well, ensuring that retailers diversifying from standard SUVs can profit.

“Electric vehicles continue to increase in price and sell quickly. Whilst diesel cars weakened slightly in price, it appears dealers are treating cars of all other fuel types in a similar fashion,” he stated.

However, the market may face a more volatile period ahead.

“We are now entering what could be a more volatile period for the car market, with franchise dealers focusing on new cars, with the 76 plate now launched. The Chinese brands in particular are keen to increase their volumes, leading to some tempting new car offers. With overall used car volumes increasing, there could be some pressure on values going forward, although it may not be until October that we start to see it. It will also be interesting to see what happens to the new Chinese brands’ used car values, as their volumes start to ramp up,” Martin commented.

While three-year-old ex-fleet supply has been steadily increasing since March, with further volume inflows anticipated through Q4, current retail demand is absorbing stock effectively. Car supermarkets remain the most aggressive buyers, pushing advertised prices up 2.0% in August following a 1.5% increase in July. Main franchised dealers (+0.4%) and independent retailers (+0.3%) also increased forecourt prices.

Martin concluded: “Fleet operators should closely monitor defleet timing through the September ‘76’ registration plate change, taking advantage of strong current demand for hatchbacks, saloons and PHEV/BEV inventory before seasonal volume pressure affects wholesale values heading into October.”