Used car values continue upward trend
Used car values rose in July for the first time in more than a decade, according to new data from cap hpi.
It found that a strong demand and a shortage of supply helped to drive up values by 0.4%.
The small increase at the three-year and 60,000-mile point was the first upward movement in the month since 2009 and followed an even stronger June. Average values at the one-year point stayed level and vehicles younger than this dropped very slightly. At all other ages, there has been a small, positive movement.
Derren Martin, head of valuations UK at cap hpi, said: “We have witnessed a relatively dramatic increase during June, then a stabilisation in July and it would appear that values have peaked but are remaining at or around that level for now. As always, there are winners and losers within these averages.
“Last month we predicted that July would be stable with no reason to expect a drop in values, but the large increases experienced in June were unlikely to continue. That is precisely what has happened. While there could be some very early signs of softening prices in August, we do forecast a relatively steady month, with possible drops to come from September onwards. When or if it comes, it is likely to be more acute for younger, higher value mainstream and premium cars.”
