Used Car Values Fall 1.7% in October: What It Means

The used car market has cooled faster than usual this autumn. 📉

According to Solera Cap HPI, used car values fell 1.7% in October, roughly £350 on an average car. That was steeper than the usual October drop of 1.4%.

For anyone buying, part-exchanging or ending a finance deal this winter, these numbers matter. Here's what's going on.

What's behind the fall?

Cap HPI pointed to two main causes: more stock reaching the wholesale market and heavy discounting on new cars.

Sold trade volumes for cars aged three to five years were almost 20% higher than a year earlier, so there's simply more choice out there.

At the same time, new car dealers are under pressure. Vertu Motors chief executive Robert Forrester described the UK as "firmly in a push market", with a big rise in pre-registrations – brand new cars registered by dealers and sold on as nearly new.

When nearly new cars come with big discounts, used prices further down the ladder have to fall to stay competitive.

Petrol and diesel hit hardest

The drop wasn't even across fuel types. In October, at three years and 60,000 miles:

Battery electric (BEV): +0.6% (about £70)
Hybrid: −1.8%
Plug-in hybrid: −1.9%
Petrol: −2.2%
Diesel: −2.6%

Across 2026 so far, BEV values are down 4.7%, compared with 8% for petrol, 9.9% for plug-in hybrids and 11.7% for diesel.

Used EVs are the surprise winner ⚡

For a long time, used electric cars were the problem child of the market. That story is changing.

Cap HPI says used EVs sold in an average of 32 days at retail in October, faster than petrol (35 days) and diesel (38 days). Models like the Vauxhall Mokka Electric (+4%), Kia e-Niro (+3%) and Kia EV6 (+2%) rose in value.

Chris Plumb, head of current car valuation at Cap HPI, said values are improving even as more electric cars enter the used market, helped by high fuel prices and growing buyer confidence.

Retail prices are softening too

Autotrader's Retail Price Index tells a similar story. In September, the average used car advertised for £17,299, down 1% year on year and 0.8% on the month.

Interestingly, older cars aged 10 to 15 years rose 5.6% in price, while newer cars fell. Budget buyers are competing hard for cheaper cars.

What this means if you're buying on finance

💡 Good news for buyers. Lower prices mean smaller loans. A £350 drop on the car you want is £350 less to borrow, and less interest to pay.

With the Bank of England raising Bank Rate to 4% on 5 November, finance costs have edged up. Softer car prices help offset that.

A few tips:

Negotiate – Cap HPI says sellers are having to be "more realistic" on price
Compare nearly new with used – pre-registered cars may be better value than you'd expect
Look at used EVs – values have held up better, which can help resale later

What it means if you're part-exchanging or ending a PCP

👉 Falling values cut both ways. If you're trading in, your car may be worth a little less than it would have been in the summer, particularly if it's petrol or diesel.

If you're nearing the end of a PCP, check your car's current value against the optional final payment (balloon). If the market value is higher, you may have equity to use as a deposit. If it's lower, handing the car back may be the smarter move.

Cap HPI expects further downward pressure as wholesale supply rises towards the end of the year, so it's worth getting a valuation sooner rather than later.

The bottom line

The used market is in buyers' favour heading into winter – especially for petrol and diesel cars – while used EVs are proving stronger than many expected.

Whether you're in Reading, Berkshire or anywhere else in the UK, We Finance Your Asset can help you compare finance options and work out the right time to buy, trade in or settle. 🚗