Used car values inch up again

Average used car values at three years and 60,000 miles moved into the positive in February, according to data from cap hpi.

An increase of 0.7%, or £50, represents the first month of growth since March last year.

Values at the one-year age point increased by a 0.2%, while values at the five-year point went up by 0.6%.

However, battery electric vehicles were the weakest fuel type, dropping by 1.7% or about £375 at three years old in Cap Live in February.

Derren Martin, director of valuations at cap hpi, said: “Overall, the average movements in Cap Live values point to a stable-to-strong used car market, following a relatively normal seasonal pattern for the first two months of the year.

“The market remains strong, retailers are busy, and wholesale supply levels are well under control. With the new 24 plates from 1 March, there will be increased volumes in the used market, from fleet returns and part-exchanges, as we progress deeper into the month and beyond.

“There will also be strong new car offers, particularly on BEVs, as manufacturers chase market share whilst attempting to hit stringent ZEV mandate targets. However, these increased volumes are unlikely to adversely affect used values until April at the earliest, and even then, any effect is unlikely to be overly harsh.”