February sees rise in used car prices
27 February 2018
Author: Sean Keywood
Used car values increased during February.
According to analysis from cap hpi, average values of three-year-old vehicles that had covered 60,000 miles rose by 1%.
The strongest-performing fuel type was petrol, which saw average prices rise by 1.3%. Petrol hybrid vehicles were also strong and diesel vehicles performed significantly better than at the same stage last year.
Derren Martin, head of current valuations at cap hpi, said: "It is the strongest movement into March since the advent of Black Book Live in 2012 and reflects the overall sentiment that the dip in new car activity has caused many dealers to step up their focus and presence in the used car market.
"The unprecedented strength in values experienced through February may well see March be more buoyant than in previous years, especially when the falling new car registrations are taken into consideration.
"We anticipate a market that is, once again, slightly weighted towards the seller, at least until we hit the Easter holiday period."
According to cap hpi, the ongoing downturn in the new car market has been reflected in a recovery of values for nearly new vehicles.
Values for six-month-old cars that had covered 5,000 miles and one-year-old cars that had covered 10,000 miles increased by 0.6% and 0.7% respectively.
Martin added: "Used car retail buyers are far less concerned with issues surrounding diesel than their new car counterparts and the fuel economy that diesel continues to offer alongside the lower Road Fund Licence, for cars registered before 1 April 2017, means that they continue to be an attractive proposition for many."
In terms of market segments, city cars saw values rise by 2.5% and superminis by 1.8%.