Used car market sees strongest December for seven years, Cap HPI reports
02 January 2020
Author: Sean Keywood
The used car market performed more strongly last month than in any December since 2012, according to automotive data firm Cap HPI.
It says average values for three-year-old cars that had covered 60,000 miles were down by 0.2%, or £50.
According to Cap HPI, city cars and superminis performed particularly strongly, increasing in average value by £50, while three-year old lower-medium cars also saw an increase.
Three-year-old small SUVs also recorded a slight improvement in value.
Cap HPI UK head of valuations Derren Martin said: "This is the strongest December since [Cap HPI's] Live [valuation service] was introduced back in 2012, mainly due to the realignment in the summer, an inconsistent new car market and steady consumer demand.
"As we move into 2020, initially at least, we are likely to see a stable or even strong used car market.
"Volumes are unlikely to increase to any great degree, and there is even the potential for the delay of company cars being returned into the used market, as drivers wait for new tax rules in April, where there is zero benefit-in-kind for zero-emissions cars. Battery supply issues could exacerbate and extend this."
According to Cap HPI, January has averaged a small drop, of 0.5%, over the last five years, with the market then strengthening further during February, except for in 2019.