Used car demand remains strong in December - Cap HPI

Average used car values declined by 1.6% at three years 60,000 miles in December, a figure that compares to the same point last year, where prices moved downward by 1.8%. 

James Dower (pictured), senior editor Black Book at Cap HPI, said: “2016 saw relative stability in values when compared to the average movements over the last 12 years, with only January and February showing greater downward pressure.

“The relative stability looks to continue into the beginning of the year.” 

He said there are some complexities within the sectors and the visibility and availability of certain models have led to some more significant reductions, alongside some others with far stronger sales results.

City car saw a far more stable performance than had been seen at the same point last year. 

January 2017 sees a downward movement overall of 1.9% versus the 2.8% it saw in the same month in 2016.  

Dower said: “Much of this is down to the reduction in pre-registration activity within the city car sector for most models and overall stock has been far more in line with demand than we have historically observed.”   

Electric vehicles saw greater stability with an average reduction of only 0.6%.

The Nissan Leaf is the standout performer with values increasing by 2.7% at one year 10,000 miles and 1.9% at three years 60,000 miles. 

The right hybrid models continue to prove attractive offering low emission levels alongside everyday practicality. 

Hybrid saw a strong sales performance and values increased by 2.7% at three years 60,000 miles, Prius (09-16) saw values improved by 2.1% at three years 60,000.  

“Retail demand is likely to increase through January and stock will begin to find its flow through the wholesale arena as dealers look to replace sold units and build a more balanced stock profile. 

“An eye must be kept on condition and Cap HPI are looking to broaden the gap between the clean, average and below values to reflect buyer behaviour and appetite, based on evidence in the market.”