Used car prices continue to fall

Used car values fell two per cent in August, the fifth consecutive month of falling values.

According to cap hpi, the decrease was the largest recorded since the introduction of cap Live in 2012, and second only to August 2010.

Darren Martin, director of valuations at cap hpi, said: “August is generally a stable month for used car values due to low supply and steady demand. However, this year, supply is increasing, despite low registrations over the last three and a half years, and demand is more muted than usual. All this comes at a time when values remain inflated from 2021 increases.

“As ever, the headlines do not paint the full picture, and the devil is in the detail. For example, average movements in isolation show that EVs are the second strongest performing fuel type this month, with diesel, petrol and plugin hybrid vehicles all seeing larger adjustments.”

He continued: “Looking forward, sales channels in the new car market will be an interesting one to watch in the pivotal plate-change month. The retail market is subdued, with pressure remaining on household budgets, so it is likely that there will be some attractive offers to consumers, as well as larger volumes being diverted into fleet.

“Volumes will no doubt increase in the used market accordingly, as part-exchanges and fleet returns appear in larger numbers.”