Used car values have dropped for the first time since before March's COVID lockdown as motor retailers pushed back against high prices for cars, says Cap HPI.
Cap HPI’s head of valuations has said that the continued growth in used car values is “not sustainable in the long-term” - but may continue into 2021.
Sales in the used car retail sector showed signs of “cooling off” according to a market report which revealed declining in activity during August – with retail sales down 3.3% year-on-year.
Used car values showed little sign of an impending “market correction” as prices rose by an average of 0.2% across the sector during August, Cap HPI has reported.
Used car values rose by 0.4% during July as automotive retail's lockdown recovery delivered the month’s first price rise since 2009, Cap HPI has reported.
Aston Barclay has said that a surge in demand for used cars stock has seen value rise to its records highest ever level for a Q2 period – with older cars and diesel vehicles leading the way.
The used car market could be on course for a similar “market correction” to that seen in May last year after car dealers and remarketing companies flew out of the blocks post-lockdown.
June delivered its first rise in used car values since 2009 in a two-tier post-lockdown market defined by increased demand for older, cheaper vehicles, according to Cap HPI.
Car retailers have been urged to “hold their nerve” and not rush to liquidate stock ahead of an anticipated rise in sales demand following June 1’s re-opening of car showrooms across the UK.
The UK's commercial vehicle market is forecast to be down by a quarter on 2019, and Cap HPI's CV expert Steve Botfield has warned the van sector's "landscape may have to change" for the medium term.
Since coronavirus lockdown started in late March Cazana has recorded a small uplift in values for sub-£10k vehicles, and there’s no been “race to the bottom” in the car market.
Growing volumes of COVID-19 coronavirus lockdown used car sales have prompted Cap HPI to admit that the time is right for recommence valuation changes – and initial sales suggest a 2% to 5% decline.
Trade and wholesale car sales delivered 3,500 vehicles into the used car market during April’s COVID-19 coronavirus lockdown automotive retail sector, according to Cap HPI.
Clarification of car retailers’ ongoing ability to sell cars online and deliver them to customers during the COVID-19 coronavirus lockdown period has been hailed as “great news”.
The automotive industry is starting to look beyond the end of lockdown and weigh-up what the short and medium-term impacts of the COVID-19 coronavirus crisis will be.
Auto Trader has urged used car dealers to resist the temptation to reduce the values of their vehicles to retain hope that the market will “pick up where we left off” after the COVID-19 coronavirus crisis.
Car clocking continues to be more prevalent as the number of vehicles with a mileage discrepancy has increased by 22% year-on-year, according to Cap HPI.
Used car values declined 2.2% in March as retail and trade demand fell due to the Covid-19 coronavirus crisis, according to Cap HPI.
The average price of a new electric vehicle (EV) has risen by 13% since 2013, according to a study of the market’s most popular models conducted by automotive data specialist Cap HPI.
Car retailers’ efforts to acquire affordable used cars for their forecourts have driven the sector’s vehicles to their highest February value growth since 2012, according to Cap HPI.
