Used market displaying unseasonal strength in December, finds Cap HPI

Analysis from Cap HPI shows the used car market is performing strongly with average car values at three years and 60,000 miles declining only 1.1% month to date.

Data experts predict the month will end with a fall of approximately 1.5% against an average decline of 1.3%. At this time last year, cap Live values were decreasing towards a -2.1% monthly drop for January following two consecutive monthly drops of 4.2%.

Commenting on the data, Chris Plumb, senior valuations editor at Cap HPI, said: “Both retail and wholesale market activity have both shown signs of slowing as we edge closer to the festive period, which is typical for this time of year and is not a cause for concern. There is a sense of optimism that January will see a normal positive start to the New Year.”

Petrol values are currently decreasing by 1.2%, with both battery electric vehicles (BEVs) and hybrid electric vehicles (HEVs) down by 1.1%. Plug-in hybrids (PHEVs) are also seeing a reduction of 1%, while diesel is decreasing by just 0.8%.

Plumb concluded: “Despite recent challenges, the market has continued to defy expectations and is likely to maintain a more predictable and seasonal trajectory. Returns of used cars will remain lower than in previous years, meaning competition for stock will remain healthy. While year-end stockholding targets may restrict some retailers, December could be a good time for others to source stock for the new year”.