Used car values down in December
Used car values fell slightly in December, according to new data released by cap hpi.
It found that the average value of a three-year-old, 60,000-mile vehicle decreased by 1.5% last month, equating to approximately £260.
About 60% of vehicles in this profile saw values drop, with a further 35% remaining stable.
However, the fall in values has not been as stark as at the end of 2023, with prices down 4.2% in the final quarter of 2024 compared to a drop of 10.5% in the last three months of 2023.
Used car values
Chris Plumb, head of current car valuation at cap hpi, said: “In line with the retail market, December’s wholesale activity has entered the typical seasonal slowdown, with conversion rates and performance against cap values gradually declining throughout the month. This trend closely mirrors previous Decembers.
“While some trade buyers remain active, they are highly selective, focusing only on the best fresh stock offered by vendors. Key factors influencing purchasing decisions include vehicles with clean mechanical and cosmetic condition reports, good specifications, provenance, desirable colours, low mileage, and competitive pricing.
“Vehicles requiring mechanical repairs or significant cosmetic improvements continue to pose challenges for vendors. Such stock often requires multiple attempts to sell and typically achieves lower returns compared to cap clean values. This trend has been consistent throughout the year, emphasising the importance of accurate vehicle assessments to ensure quick and efficient stock turnover.”
Meanwhile, used petrol vehicles saw values fall by 1.8% in December compared to a 1.4% decline in electric vehicles and a 1.2% decrease in both hybrids and diesels.
Plumb concluded:
“The outlook for January, and beyond, is optimistic and largely positive. Low supply will continue to play a key role in maintaining healthy competition and demand for used car stock, while projected consumer demand remains encouraging.”
