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Figures show decline in used car market

Date: 02 January 2018   |   Author: Sean Keywood

Used car values dropped by 1.1% in December, according to analysis by cap hpi.

The figures included values for three-year-old vehicles which had covered 60,000 miles moving back by 1.1%, although this was an improvement on December 2016, when a fall of 1.6% was recorded.

Average values for one-year-old vehicles which had covered 10,000 miles fell slightly more, at 1.2%, which cap hpi puts down to greater volumes entering both the retail and wholesale market.

There was a stronger performance from electric vehicles, with prices for three-year-old cars which had covered 60,000 miles rising by 0.9%.

This included prices for the Renault Zoe rising by 9.9%, prices for the 2013-2015 Smart ForTwo electric rising by 5.2%, and prices for the Peugeot Ion rising by 4.2%.

The city car sector also saw high demand, with values at three years and 60,000 miles falling by just 0.1%.

Top performers included the 2008 to 2015 Fiat 500, which saw values rise by 2.1%, the current Toyota Aygo, which rose by 2%, and the current Smart ForTwo, which rose by 1.8%.

James Dower, senior editor of Black Book at cap hpi, said: "Historically, used car activity starts to improve after the Christmas period and values begin to strengthen. 

"Buyers will be looking to replenish sold stock and those who have run a more lean stock into the back end of the year will also be looking to capitalise on the upturn in retail enquiry rates. 

"Wholesale stock levels tend to be relatively healthy at this point in the year, but it is likely that the higher graded vehicles will generate the greatest level of attention from the buyers and will look to command higher values in the increasingly competitive marketplace.

"Used cars are, most certainly, going to be of utmost importance to profitability through the coming year.

"The used car market is likely to increase in volume due to the historic levels of new car registrations but, with the decline in new car volume, this should have a stabilising effect."