Used car values fell by 1.1% last month, says Cap HPI

Used car values dropped by 1.1% in December but will strengthen after the Christmas period, according to analysis by Cap HPI.

It showed values for vehicles at three years 60,000 miles moved back by 1.1% last month compared to a fall of 1.6% in December 2016.

Average values at one year 10,000 miles fell slightly more and moved back by 1.2% due to greater volumes entering both the retail and wholesale market.

City Car sector saw high demand with values falling by 0.1% at three years 60,000 miles. Top performers included the Fiat 500 (08-15), which rose by 2.1%, Toyota Aygo (14- ) up 2% and Smart Fortwo (14- ) strengthen by 1.8%.  

Cap HPI’s senior editor of Black Book James Dower (pictured) said: “At a time where we would normally witness some levelling off in the Coupe Cabriolet and Convertible sectors, the weather had a notable effect moving through the month and values at three years 60,000 miles reduced by 2.7% and 1.8% respectively. January could prove to see interest in these vehicles increase as spring moves ever closer.” 

The electric vehicle sector saw average prices rise at three years 60,000 miles by 0.9%. Key influences within the overall average movement were Renault Zoe (13- ) Electric, which continues to see strong demand and moved up by 9.9%, Smart ForTwo (13-15) Electric increased by 5.2% and Peugeot Ion (11- ) which increased by 4.2%.

Dower said: “Historically, used car activity starts to improve after the Christmas period and values begin to strengthen. 

"Buyers will be looking to replenish sold stock and those who have run a more lean stock into the back end of the year will also be looking to capitalise on the upturn in retail enquiry rates.  

“Wholesale stock levels tend to be relatively healthy at this point in the year, but it is likely that the higher graded vehicles will generate the greatest level of attention from the buyers and will look to command higher values in the increasingly competitive marketplace.

“Used cars are, most certainly, going to be of utmost importance to profitability through the coming year.

"The used car market is likely to increase in volume due to the historic levels of new car registrations but, with the decline in new car volume, this should have a stabilising effect.”