Used car market fragmented by shifting demand
The used car market is becoming increasingly fragmented, with demand varying across fuel types and vehicle age.
According to the latest data from Solera cap hpi, average values at the three-year, 60,000-mile point reduced by 0.7% in July, while values at five years and 80,000 miles fell by 1.5% and 10-year-old vehicles at 100,000 miles dropped by 2.8%.
Meanwhile, diesel models were the poorest performing fuel type for the third month in a row, down 1.1%, while electric vehicle values dropped 0.2% and average hybrid models prices rose 0.3%.
Chris Plumb, head of current car valuations at Solera cap hpi, said: “Values have held up well despite the increase in supply during the first half of the year. Buyers are still active, but they’re choosing stock much more carefully than they were 12 months ago.
“Clean, retail-ready vehicles continue to attract strong demand, but older, higher-mileage stock is proving much harder to place.”
He added:
“Demand for well-priced used EVs remains healthy, although the exceptional gains seen over the past couple of months are beginning to level out as supply improves for some models. Hybrids also continue to perform well as buyers look for lower running costs without making the move to a fully electric vehicle.”
