Cazana warns of volatility in used car market
The used car market is set for a volatile period after average prices at the three-year point rose by 0.5% in August, according to the latest data from Cazana.
Meanwhile, average prices for one-year-old cars rose by 0.7% during the month, or £180.
The data also revealed continued strong demand for electric vehicles, with average prices for three-year-old models increasing by 7.5%, or £1,600, in the last five months. This compares to rises of 0.5% and 0.4% for petrol and hybrid models during August, while diesel values were down 0.7% month-on-month.
At a brand level, Mercedes-Benz were up 2.2% in August, ahead of Ford (1.9%), Renault (1.7%), and Vauxhall (1.6%).
Derren Martin, automotive expert at Cazana, said: “The used car retail market in August remained in good health, with many dealers nudging prices up following a stable couple of months previously. Electric vehicles continue to increase in price and sell quickly, while diesel cars weakened slightly in price.
“We are now entering what could be a more volatile period for the car market, with franchise dealers focussing on new cars. The Chinese brands in particular are keen to increase their volumes, leading to some tempting new car offers.
“With overall used car volumes increasing, there could be some pressure on values going forward, although it may not be until October that we start to see it. It will also be interesting to see what happens to the new Chinese brands used car values as their volumes start to ramp up.”
