Used car values weakening

Used car values fell by their largest amount since 2008 in September.

According to data from cap hpi, values dropped by 1.9%, or about £420, at the three-year, 60,000 point. Values at the one-year age point dropped by 1.6%, equivalent to £575, while older cars dropped by 1.8% at five years old and 2.1% at 10-years old.

Derren Martin, director of valuations at cap hpi, said: “It is important to put this month’s data into context. Used car values currently remain some 25-30% above where they were before those extraordinary increases in 2021. The downward movements now being experienced are a relatively gentle realignment, not a crash, and they are no longer increasing in severity – value drops have been consistent for the last three months now.”

Meanwhile, for the first month this year, EVs are the best-performing fuel type on average at three years 60,000 miles, as values have reduced by just one per cent. This is the smallest average reduction to electric vehicles in the last 12 months.

Martin concluded: “An average reduction similar to that of the last three months is widely expected.”