Hatchbacks emerged as the strongest-performing body style in the used car market during June, as dealers benefited from resilient consumer demand and improving margins.
New analysis from Cazana found hatchback values increased by 1% during the month, while SUV prices remained broadly flat.
The performance comes despite years of new car buyers favouring SUVs over traditional family hatchbacks.
Overall, average retail values for three-year-old used cars increased by 0.2% during June, while wholesale values softened slightly, allowing dealers to maintain and gradually improve margins.
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Practical models continue to attract buyers
Cazana said the strongest-performing hatchbacks were increasingly electric models, with the Hyundai Kona Electric, Tesla Model 3 and Volkswagen ID.3 all averaging just 15 to 16 days on dealer forecourts.
Three-year-old electric vehicles recorded a 2% increase in value during June, taking gains over the past three months to almost 5%.
Diesel was the next strongest-performing fuel type, with values rising 0.5%, while petrol and hybrid values remained largely unchanged.
Derren Martin, automotive expert at Cazana, said: “The used car retail market in June stabilised after a particularly strong period. This should be seen as a positive for the time of year, given the multiple distractions for consumers, including the hot weather and the World Cup.
“The trend since the start of the year remains strong, and with trade values dropping slightly, margins are being maintained overall.”
Dealers urged to focus on stock mix
Martin said hatchbacks remained one of the strongest opportunities for dealers, while electric vehicles continued to be the standout performers in the used market.
He said: “Hatchbacks hit the sweet spot over the last month, maintaining their position as a solid choice for dealers to fill their forecourts with. However, once again, the main story is about fuel type.”
Martin said used EVs continued to rise in value and sell quickly, with many dealers now struggling to source enough stock.
Looking ahead, he said softer wholesale values and resilient retail prices meant dealers should remain disciplined on pricing, with unnecessary discounting likely to erode margins.
He added: “Dealers should overcome lingering historical hesitations regarding electric cars. With high-volume EVs like the Model 3 and ID.3 acting as highly liquid assets that turn twice as fast as some traditional combustion-engine variants, stocking sub-20-day-turn units is critical to maximising asset turnover.”
Alongside hatchbacks, Cazana said Renault, Skoda, Volvo and BMW recorded the strongest brand performance during June, while Land Rover and Mercedes-Benz experienced the largest declines in retail values.