Used values hold firm in January

January saw used values at the three-year, 60,000-mile point reduce by a negligible 0.1%, equivalent to £90 on average, according to experts at cap hpi.

The fall of 0.1% was the strongest performance in a month since March last year and is in line with the average movement in January, which sits at 0.3% for the previous 11 Januarys since Cap Live was introduced and is the fourth most positive January in that period.

Derren Martin, director of valuations at cap hpi, said: “It has been well-documented just how far prices fell in the final quarter of 2023, as reflected in Cap Live value movements, which dropped by an average of 10.5% in that October-December period. There was the perfect storm of heavier supply, lower demand, high used car prices and lower-than-market values for fleet companies’ residual values on stock returning to the market. All this meant wholesale sellers were prepared to sell for low percentages of monthly Cap, which drove values down in our Live product.

“Thankfully, this short period of volatility has come to an end. January Cap Live saw some small drops up to the 10th of the month, but at that point, there was an about-turn, and values started to go back up for many models.”

Values did fall slightly more at younger ages, with a 0.5% decline at one-year, 10,000 miles, equivalent to £285, while at older ages there was a 0.1% drop at five-years old and 0.3% at 10-years, equivalent to average drops of just £50 and £20, respectively.