Strong demand drives up used city car values in August

Strong demand pushed used values in the city car sector up by 1.3% in August for vehicles at the three years and 60,000-mile mark.

Cap HPI says the Skoda Citygo (2012- ) and Hyundai I10 (2014- ) saw increases of 3.0%, Toyota iQ (09-15) rose 2.9% and Peugeot 108 (2014- ) increased 2.1%.  

James Dower, senior editor of Black Book at Cap HPI, said: “The city car sector is dominated by petrol derivatives and the lower volumes of nearly new vehicles witnessed this year have been a significant factor in their performance.”

Lower stock levels supported values overall in August with the market seeing an average downward movement of only 0.2% at three years 60,000 miles, which compares favourably to a reduction of 0.7% at the same time in 2016. 

Diesel values decreased by 0.6% at three years 60,000 miles, which is a stronger performance than last August which saw values slip by 0.8%. 

Petrol, on average, saw an increase in values of 0.1% which is far stronger than the -0.7% movement witnessed at the same point in 2016, with automatic derivatives proving popular. Petrol hybrid saw significant strength, and average prices moved up by 1.3%.  

Electric Vehicles saw signs of stability with prices only edging back by 0.1% through the month.