Used car market holding firm
The used car market is standing up well to the global pandemic, according to new data released by cap hpi.
It has found that its Live values reported an overall drop of 1.5% at the three-year point during February. This drop is equivalent to an average of £150 per car. Since October, used car trade values have dropped by 9.4%, or almost £950.
Head of valuations Derren Martin said: “It would be easy to look at this headline figure and suggest that the used car market is struggling, but that is definitely not the case. The average drops of almost 10% were preceded by a period of six-months where average prices increased – we believed a realignment was always likely. Add to that the fact that for the last two months, and in November, the country has been in lockdown, with physical car showrooms closed, it is unsurprising that there has been some pressure on prices due to a forced drop off in demand.”
He added: “Our analysis shows that with average retail sales rates being at around 65% of this time last year, the remaining 35% of consumers will be looking to buy once showrooms reopen in April. Add to this those members of the public that are naturally in the market at this point anyway and we are likely to see a period of strong demand. We expect to see this push prices up for a short period of time.”
