The used car retail market demonstrated continued momentum with a second consecutive month of growth in February 2026, according to data from Cazana, an automotive data intelligence provider.
Following January's steady performance, February showed strengthening retail values across all vehicle age groups, reflecting sustained demand for second-hand stock despite economic headwinds.
Key Price Movements
Three-year-old vehicles led gains with a 1.7% value increase, adding approximately £340 to typical retail prices. One-year-old cars appreciated 0.7%, while five-year-old vehicles climbed 1.4%. Even ten-year-old budget market staples gained 0.5%.
Fuel Type Performance
All fuel categories experienced price rises. Hybrids achieved the strongest performance at 2.3% growth. Electric vehicles rebounded from January's slight decline with a 1.4% increase, suggesting they may now be increasingly viewed on equal footing with internal combustion engine (ICE) counterparts.
Body Style Trends
Traditionally underperforming segments drove market dynamics. Estates jumped 3.4%, saloons rose 2.5%, and MPVs gained 2%. SUVs increased 1.5% and hatchbacks 1.4%. Convertible prices climbed 2.6% in anticipation of warmer weather.
Brand Performance
Mercedes-Benz led with a 2.6% increase, followed by Citroën and BMW. Tesla's Model 3 and Model Y both declined (2.1% and 0.6%, respectively). Volvo fell 0.7% and Audi dropped 0.6%.
Retail Channel Results
Independent dealers achieved the strongest growth at 2%, while franchise dealers rose 1.8% and car supermarkets gained 0.8%.
Expert Commentary
"The used car retail market has continued its strong start to 2026, as predicted, and there continue to be very few negatives as we enter the crucial month of March."
Derren Martin, Cazana
He highlighted positive EV momentum and noted that estate vehicles present opportunities for dealers to maximise margins through niche stocking strategies. Martin anticipated March would remain steady, with used car volumes increasing toward month-end as new 26-plate vehicles launch, though larger inventory movements wouldn't appear until late March or April.
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