Used car values fall again in November
November saw used trade values fall by 4.2%, or £775 at the three-year age point, according to experts at cap hpi.
The news follows October’s fall of 4.2%, which means that average trade values have dropped by 8.4% or £1,625 in the last two months.
However, average values remain around 15% above where they were at the start of 2021 for petrol and diesel vehicles, while electric vehicles, on average, are around 20% lower.
Derren Martin, head of valuations at cap hpi, said: “It is not uncommon for values to drop in November. This year is, however, the largest drop going into December that we have on record. There is no escaping that a realignment, not a crash, is ongoing.”
At the one-year age point, values dropped by a lower, 3.3%, in November, equivalent to around £1,000, whilst older vehicles held up better, with a 2.6% drop at the 10-year point. Indeed, cars valued below £5,000 have dropped by 2.4%, less than £90 on average.
Martin said: “Values will likely continue to drop in the run-up to Christmas. While retailers’ appetite may increase slightly as they look to buy for an anticipated increase in consumer demand, this is unlikely to be in large quantities and not by enough to eat too much into the volumes that are present in the wholesale market. Since cap Live was introduced in 2012, December has experienced an average drop of just 1.3%, with the largest being 2.2% in 2014. With the current realignment ongoing, however, and consumer demand only likely to increase after Christmas, it would be no surprise for a downward movement in excess of these figures.”
