Retail prices of used cars rose for a second consecutive, according to the latest data from Percayso Vehicle Intelligence.
October saw values for 3-year-old cars up 1.2% or £300 following September’s 0.9% rise.
This growth comes as trade values have dropped, slightly widening margins for retailers on the back of continued low stock levels for cars of this age.
The market saw a “dramatic resurgence” in demand for used electric vehicles (EVs).
After a year of falling prices, EVs posted the largest increase of any fuel type for the second month in a row, up 2.9%, or £600 on average.
The Nissan Leaf was the best-performing EV, with 3-year-old models increasing in value by 10% (rising from just under £13,000 to over £14,000). The Tesla Model 3 also performed strongly, up 7.8%.
Analyst with Percayso Derren Martin said: “October has continued in a similar vein to the last 2-3 months, with retailers continuing to push their advertised prices up, on average.
“Demand for electric vehicles continues its upward trajectory, and this is illustrated in the strong increases in prices. Many models now look fantastic value at the 3-year age point in particular.
“Consumers are now more actively considering these, and independents and car supermarkets are stocking them in greater numbers now. This is great news for the whole automotive market, as strong residuals values are dependent on strong current used car values.
“Dealers will be delighted to see some more 3-year-old cars of all fuel types entering the trade market now, with part-exchanges and fleet returns generated by the plate change month.
“The final two months of the year will be fascinating to track whether the recent trend of retail prices increasing continues, or whether normal seasonality comes into play, as consumers focus on saving money for the festive season.”