Used car values remain stable despite upcoming election, says Cap HPI

The used car market demonstrated remarkable stability in June with average values dropping just 0.1%, or £25, for vehicles three years old with 60,000 miles.

This performance, highlighted by experts at Cap HPI, marks the strongest June since 2009, excluding the pandemic-affected years.

Historically, June typically sees a decline of around 1.2%.

Derren Martin, director of valuations at cap hpi, said: “The positive sentiment in the used car retail market has grown in June. With interest rates stabilising, inflation decreasing, and consumers adjusting to the new normal of cost-of-living concerns, the demand for used cars remains strong.”

Despite potential distractions like Euro 24 football and the upcoming General Election on July 4, the market has maintained its momentum. Petrol cars continue to lead consumer preference, with hybrids and plug-in hybrids also gaining popularity among those hesitant to switch to Battery Electric Vehicles (BEVs).

Convertibles and coupe cabriolets saw nearly a 1% increase in value, benefiting from seasonal demand and reduced availability as manufacturers focus on producing more SUVs and EVs. Notably, high-value cars like the Mercedes AMG C-Class Cabriolet experienced a significant value increase of 5% or approximately £1,500 due to low volume.

Average values for petrol cars increased at both one- and three-year age points, while diesel cars and hybrids saw slight declines. BEVs, although still the weakest in value retention, showed a less pronounced decline of 1.7%, equating to £350.

This represents an improvement compared to the previous three months, making June and July joint best-performing months for BEVs since March.

An analysis of BEVs within this age profile revealed that 68% decreased in value, 25% remained stable, and 7% saw an increase, a significant improvement from the prior month where 89% experienced a decline and only 1% increased.

Martin concluded: “There is no indication of an end to the strong performance we’ve seen in 2024. Consumer demand remains steady, particularly for vehicles under four years old.

“History shows that General Elections have minimal impact on market trends, similar to large sporting events. While July typically sees a 1.1% drop in values, we anticipate this year to mirror June’s performance, with potential for slight value increases or minimal decreases, indicating a robust market.”