Used EVs, premium saloons power strong May for dealers

The UK used car market remained strong in May 2026, with electric vehicles (EVs) and premium saloons leading price growth despite seasonal slowdowns. Average retail values for three-year-old cars increased 0.7%, equivalent to £170, marking the fifth consecutive monthly rise in 2026. Five-year-old vehicles rose 0.6%, while one-year-old models remained stable, and 10-year-old cars dipped slightly by 1%. Used EV demand accelerated, with retail values climbing 1.2%—the second consecutive monthly increase—outpacing hybrids (up 0.8%) and other fuel types. EVs now sell 20 days faster than diesel models and 10 days quicker than petrol cars, with the MG4 leading as the fastest-selling three-year-old vehicle at an average of 13 days. The Cupra Born, Mini Hatchback, and Tesla Model 3 followed closely, selling in 16, 18, and 19 days respectively. Premium saloons and estates also performed strongly, with saloon values rising 2.3% after two months of 5% growth, while estate values edged up 0.3% following a 5% increase in March and April. Brand-wise, Volvo recorded the highest value growth among three-year-old cars, up 2.8% in May and nearly 6% over two months. Audi and BMW also saw gains of 2.2% and 1.8%, respectively, while Kia and Ford experienced slight declines. Cazana highlighted a growing gap between falling wholesale values and rising retail prices, creating margin opportunities for dealers. Car supermarkets raised retail prices by an average of 2.7%, franchise dealers by 1%, and independent dealers reduced prices by 1.3%. Derren Martin, Cazana’s automotive expert, noted that dealers adjusted pricing upward to offset lower trade values, with EVs driving the strongest demand. The market’s resilience in May—traditionally a slower month due to bank holidays—was attributed to high consumer demand and strategic dealer pricing. Martin advised dealers to prioritize fast-turn EV stock like the MG4 and Cupra Born to maximize asset turnover. With three-year-old stock volumes flattening, sourcing premium German saloons (BMW and Audi) and resurgent Volvos was emphasized as highly competitive, given supply shortages and strong demand.