Used car values continue falling
Used car values at three years and 60,000 miles fell by 2.1% in December, adding to a cumulative drop of 8.4% over the last two months.
According to cap hpi, values dropped by 1.8% or £550 at the one-year age point, while at older ages there was a 2.1% (c£250) drop at five years old and just a 1.4% (£75) reduction at 10 years old.
Meanwhile, on average, Battery Electric Vehicles (BEVs) have dropped by over 40% in the last 12 months and throughout December BEV values continued to decline. Values at three years old decreased by 2.3% (£525) in December.
Derren Martin, director of valuations at cap hpi, said: “Although the drop does equate to a 10.5% or around £2,000 reduction in the last three months, it is important to remember the context behind the moves – in a six-month period in 2021 values increased by almost 30%, equivalent to over £5,500 on average, and they had barely dropped until the last few months. Average used car values remain around 13% above where they were at the start of 2021.
“Looking into 2024, it is likely that supply will continue to outweigh demand, at least in the short term. In the first quarter of 2023, values went up in each of the first three months, something we had not witnessed before. It is unlikely to be repeated in 2024, mainly because of the volume that will be present. However, we are forecasting far smaller drops than over the last three months and a relatively positive start to 2024. Live values continue to be the way forward, with monthly ones out of date if not before they are published, certainly soon after.”
