Predictability returns to used car market

Cap hpi data has suggested that used car volumes are returning to traditional trends.

It found that car values at the three-year, 60,000-mile point, fell by 1.5% during April, or £300. This is in line with the 1.2% drop seen during the month since Cap Live was introduced 12 years ago.

Meanwhile, values at the one-year age point declined by 1.3%, and at five and ten years old they fell by two and three per cent respectively.

In terms of fuel types, BEVs saw the largest average decline. They dropped by 3.7%, around £780 on average, compared to one per cent (£200) for petrol and 1.9% (£380) for diesel.

Derren Martin, director of valuations at cap hpi, said: “The market feels healthy, but a number of retailers have expressed that demand is slightly below where they had hoped and budgeted for, after a robust first quarter. Petrol-engine vehicles have continued to be the flavour of the month, with dealers comfortable that they will sell these quicker than other fuel types. Interestingly, BEVs and diesel-engine cars have been the slowest to sell, making dealers wary about overstocking.”

“It would not be a surprise to see values continuing to gently dip in Cap Live in May, in what is traditionally one of the more difficult months of the year, with supply still high from March and April new car activity, plus Bank Holidays to contend with. The average May movement in values since 2012, excluding 2020 and 2021 due to the highly unusual used market in those years, was 1.6%. So, if we are returning to seasonal norms, somewhere close to this average would not be a shock.”