Fleet operators and remarketing managers face a changing used wholesale landscape as retail values experienced their first monthly dip of 2026, according to the latest market data from automotive data specialist Cazana.
Average retail values at the key defleet milestone of three years fell slightly by 0.2% (c.£50) in September; however, Cazana stresses that this minor correction follows August’s 0.5% growth, meaning fundamental residual values (RVs) remain healthy heading into Q4.
For fleet managers holding older defleet assets, demand for budget-friendly stock remained strong. Five-year and ten-year-old vehicle values both increased by 0.2% (representing £10 to £20 gains), confirming steady retail appetite for older used vehicles.
The headline 0.2% drop at the three-year mark would have been far worse without sustained EV performance. For the sixth consecutive month, EVs recorded the highest percentage value increases of any powertrain, rising 1.6% (c.£330) at three years old. Over the past six months, three-year-old ex-fleet EVs retail prices have surged by an average of 9.1% (nearly £2,000).
Cazana attributes this upward trajectory to realistic secondary market pricing compared to internal combustion engine (ICE) alternatives, combined with rising forecourt fuel prices pushing retail buyers toward electric mobility.
In contrast, diesels were hit hardest, with a 1.8% drop as pump prices crossed £2.00 per litre. Dealer forecourt stock of three-year-old diesels has shrunk to just 3%, signalling a sharp decline in trade appetite for high-mileage diesel defleets. Petrol cars dropped by 0.5%, and hybrids edged down 0.3%. By comparison, EVs now represent 13% of all three-year-old vehicles on dealer forecourts.
As expected during a ‘76’ plate-change month, three-year-old defleet stock volumes increased across wholesale channels. Cazana also recorded over 2,500 ‘76’ plate pre-registered vehicles advertised on retail platforms by late September.
Pre-registrations were highest for Peugeot (440 units), Vauxhall (350 units), and Volvo (340 units), suggesting major OEMs are actively pushing non-demand-led volume into the new car market, which could influence short-term used values.
Despite broader headwinds, specific fleet-popular models turned stock quickly. The fastest-selling cars in September were the Kia Sportage HEV and Renault Megane E-Tech (both averaging 15 days on forecourt), followed by the Peugeot 5008 and Toyota Aygo (19 days).
Fleet vehicle values diverged sharply across manufacturers and vehicle segments, with German premium brands showing mixed movement. Audi recorded the largest drop among major brands at -2.4%, while Mercedes-Benz fell 1.2%. BMW bucked the luxury trend with a 1.1% increase. Volume and Asian brands Toyota (+3.2%), Kia (+2.4%), and Renault (+2.1%) delivered strong gains.
Major Chinese brands drove volume in the new car market, led by the Jaecoo 7, while the used retail sector remained stable, with steady pricing across BYD, Chery, Omoda, Jaecoo, and MG.
By body style, hatchbacks gained 0.7% despite representing a smaller share of the EV market. SUVs dropped slightly by 0.5%, while saloons, estates, and MPVs all declined by approximately 1.0%.
Cazana’s data shows car supermarkets were the most aggressive buyers, putting prices up by 1.7%, while main dealers held values flat and independent traders dropped asking prices by 0.9%.
Derren Martin, automotive expert at Cazana, said, “The used car retail market in September saw the first signs of pressure for some time, as volumes increased from new-plate activity, particularly for internal-combustion engine cars.
“Electric vehicles continue to be sought after, however, petrol and diesel prices at the pumps are causing consumers to accelerate on their EV journey. Diesel cars dropped the most in price & dealers need to be careful when considering what to pay for these as part-exchanges, or whether to stock them at all.
“It will be interesting to see how the market copes in the final quarter of the year and whether prices will continue to drop, particularly as new car offers & pre-registration activity from traditional and new brands may be particularly enticing as manufacturers chase volume & market share targets.”
