Solera reports rising used car values in February
Solera cap hpi has reported rising used car values in February, with average prices up 0.4% at the three-year, 60,000-mile benchmark
At one year old values edged up slightly by 0.1%.
However, used BEV values declined across all the age and mileage profiles. At one year and 10,000 miles, values dropped by 1.6% (£540), while at three years and 60,000 miles, the decline was also 1.6% (£350).
Five-year-old BEVs saw the steepest drop at 2.2% (£400).
When analysing by price band, the most significant gains in percentage terms were seen in vehicles priced up to £5,000, which increased by 1.8%, followed by a 1.3% rise for those between £5,000 and £10,000, and a 0.7% increase for models in the £10,000 to £15,000 range.
New car market uncertainty
Chris Plumb, head of current car valuation at Solera cap hpi, said: “With ongoing uncertainty in the new car market, some franchised retailers are placing greater emphasis on expanding their used car operations and strengthening their aftersales business to mitigate potential revenue pressures, which in turn increases competition for vehicles through wholesale channels.
“The result has been upward pressure on values in recent weeks, marginally above the seasonal norms.”
He concluded:
“With the arrival of the new ‘25’ plate from the 1 March, we anticipate increased volumes within the used car market as fleet returns and part-exchanges filter through. At the same time, manufacturers are offering competitive new car deals —particularly on BEVs. However, any impact on used values is unlikely to be felt until April at the earliest, and even then, any downward pressure is expected to be moderate.”
