Used car values hold firm through August
Used car values have fallen by 0.6% in August, with strong wholesale demand keeping prices stable.
According to data from cap hpi, values have now fallen by an average of just 0.5% in each of the last four months and two per cent in total.
Derren Martin, director of valuations of cap hpi, said: “The reduction of prices in the final quarter of last year took some of the necessary heat out of values that had been prevalent since the increases of 2021, but without returning them completely to where they were.
“It seems used car prices reached a fair level for retailers and consumers at the start of 2024, and as a result, they have been largely stable ever since. There are nuances within this, and where supply outstrips demand for certain models and fuel types, values have fallen, but as an average, used car prices have experienced a stable year thus far.
“With the retail market remaining robust, there has been continued healthy demand for retailers to replenish their stocks, particularly as they have kept inventory levels low due to the increased costs of stocking. Indeed, the main challenge has been finding enough cars in the right condition, price-point and at the preferred age and mileage. Limited supply, along with steady demand, is helping to keep prices robust.”
Used car values
Data revealed that at the one-year age point, values dropped by an average of 0.6% while 10-year-old values dropped by 2.1% on average.
Pure hybrids were the best-performing fuel type over the last month, dropping by an average of just 0.2%, compared to a 0.6% average decrease on petrol models and a one per cent fall in EV values.
Martin concluded:
“As we approach the final quarter, there may be some trepidation due to the large realignment of last year, with values dropping by an average of 10.5% from October to December 2023. It is highly unlikely that there will be a repeat in 2024. There will not be the same high volumes of defleets all at the same time, interest rates are more stable and cost-of-living concerns less prevalent, meaning less of a drop in demand.”
