Used car values fall despite electric uptick
Used car values fell by 1.7% in October, which equates to around £350, according to Solera cap hpi.
The fall, measured at three years and 60,000 miles, was greater than the seasonal average of 1.4% and marks one of the weakest November valuation movements.
Sold trade volumes for cars aged three to five years were almost 20% higher than the same period last year, giving dealers more choice at auction.
Despite the wider decline, battery electric vehicles saw an increase in values of 0.6%, or £70, at three years and 60,000 miles. Against this, hybrid values fell by 1.8%, plug-in hybrids by 1.9%, petrol by 2.2% and diesel by 2.6%.
Chris Plumb, head of current car valuation at Solera cap hpi, said: “We’ve seen more stock coming into the wholesale market during October, while attractive new car offers are making life harder for used car retailers. Buyers are still active at auction, but they’re being more selective about what they purchase and how much they’re prepared to pay. Cars are selling, although vendors are having to be more realistic about prices.”
He continued: “Used electric cars are performing well, particularly at the more affordable end of the market. Buyers are becoming more comfortable with the technology, and high fuel prices are encouraging more people to consider switching.
“What’s encouraging is that values are improving even as more electric cars enter the used market. Dealers are finding buyers for them, and they’re generally selling quickly.”
