May used car market performs ahead of expectations

The used car market performed ahead of seasonal expectations in May, featuring the strongest May into June movement since the introduction of Cap Live in 2012. Average movements, excluding the Covid years, of -1.6% and average values decreased by -0.9%, or approximately £210 at three years, 60,000 miles, according to the experts at cap hpi.

At the one-year age point, values declined by -0.8% or £325, while at five years old, values reduced by -1.3% or £160 and -2.4% or £100 at 10 years.

Jeremy Yea, senior valuations editor at cap hpi, said:

“There is strong demand for retail-friendly vehicles in good condition and in the most desired fuel types. However, buyers have become more discerning in their choices, prioritising desirable and fast-selling stock over potentially depreciating assets that could pose financial risks.

“The market continues to perform in line with seasonal expectations, or even slightly better for some and wholesale activity has remained largely stable throughout the month. Trade data supply volumes have remained consistent and healthy, with mid-month supply tracking around 6% above the same period in 2023, and 10% down compared to pre-Covid19.”

May used car market

Convertibles and coupe cabriolets continued on a seasonal rise, increasing by 0.9% or £80 and 2.5% or £400, respectively, at the three-year age point. However, Supermini dropped by a negligible -0.1%, with Lower Medium (or C Sector) also only dropping by -0.8% or £100, meaning that these are the strongest mainstream sectors and highlight the demand for cheaper fast-churning stock.

Petrol engine cars reduced by -0.4% or £135, highlighting this as the go-to fuel type for both consumers and dealers. Diesel continued to split further away from petrol for the fifth consecutive month and fell by -1.1% or £210, along with Plugin Hybrid at -1.1% or £285 and pure Hybrid by -1.0% or £200.

BEV values

Values for used battery electric vehicles (BEVs) have almost mirrored the average performance from last month. At the standard measurement of three years and 60,000 miles, values have decreased by -3.6% or £785 on average. It has resulted in a continuous decline for 21 consecutive months, and in total, the cumulative decrease in BEV values amounts to approximately 57%, compared to petrol, with a decline of around -12% over the same period. Yea concluded:

“Our wholesale supply of BEV sold data continues to increase month-on-month at a phenomenal rate, which has been fascinating to observe. We have already received around 70% of last year’s total trade sold volumes in less than five months, and April also recorded the highest trade volume of used BEVs sold in a single month – a real positive for both vendors and buyers.”