Strong start to 2025 for used car market, reports cap hpi
The Used car market enjoyed strong growth in January, with cap hpi predicting the momentum will continue through February and March.
At the one-year mark values declined by of 0.3%, equating to about £150, while values at the three-year, 60,000-mile benchmark were down 0.1%, translating to an average decrease of just £60.
Meanwhile, the five-year and ten-year age points experienced increases of 0.4% (or £10) and 1.6% (around £60), respectively.
In terms of fuel types, diesel emerged as the strongest performer at the three-year mark with a 0.2% increase, or around £40, while hybrids remained flat overall. Petrol saw a marginal decline of 0.1%, or approximately £60, and plug-in hybrids dropped by 0.6%, or around £175.
Electric vehicles experienced the biggest decline this month, falling by 1.1%, or roughly £240.
January a ‘solid month’
Jeremy Yea, senior valuations editor at cap hpi, said: “It’s a bit of a myth that values go up in January, as since the introduction of CAP Live in 2012, the average monthly movement for this period is a negligible 0.2%. Only three years since 2012 have resulted in positive February monthly movements – 2012 (0.5%), 2020 (0.6%) and 2023 (0.1%) – with the weakest being a drop of 0.7% back in 2019.”
He continued:
“January ended broadly in line with our short-term forecast position and overall expectation. It has been a good solid month for most retailers, auctions and wholesale vendors, but with some adverse weather perhaps affecting a more positive outcome. February will likely continue on a positive trajectory, with demand increasing as stock becomes thinner on the ground the closer we get to March.”
