In November, used car values dropped 0.6% at the 3 year 60,000 mile point compared to the five year average of -2.3%, according to experts at cap hpi.
Demand from consumers and a shortage of wholesale supply led the market to outperform seasonal norms.
Go deeper with GlobalData
Younger cars saw a 1.1% average fall at the 1 year, 10,000 mile point, an average drop of £100 and £250 respectively.
Experts at cap hpi say younger cars are under more pressure off the back of a certain degree of pre-registration activity, especially in September.
Derren Martin, head of UK valuations at cap hpi said: “In addition to the current shortage of supply the industry saw unusually heavy price drops earlier on in the year. The much talked about realignment of prices felt from the start of 2019, which accelerated from Easter onward, as reflected in cap hpi live valuations, seem to have had a positive effect on the market.
“The market drops in Live from April to July equalled almost 10%. Since then, over the last four months, there has been less than a cumulative 2% drop. The realignments seem to have stimulated the market positively,” he added.
How well do you really know your competitors?
Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.
Thank you!
Your download email will arrive shortly
Not ready to buy yet? Download a free sample
We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form
By GlobalDataThe values of petrol cars came under more pressure than diesel, with the proportion of supply in the market continuing to increase off the back of new car registrations.
Average diesel car values dropped by 0.5% and petrol cars by 0.7%. Electric cars experienced the smallest drop at 0.4%.
City cars increased in value on average during November increasing by 1.2% overall. Volkswagen Up!, Vauxhall Adam and Skoda Citigo the examples of cars increasing.
Superminis were found to be the next strongest car in value terms posting an average of 0% at the three-year point.
At the one year mark, due to duplication of cars in the market valued dropped by approximately £100 on average.
In the UV sector which carried almost 25% of all volume used in the market according to trade data received by cap hpi in 2019, the average drop in November has been 0.6%.
Martin said: “As we enter the final weeks of what has been a roller-coaster year for the used car market, it is likely that relative stability will reign for the next few weeks at least. It has been a tough year for many dealer groups and the realignment of pricing after a strong 2017 and 2018 did cause some issues.
“Supply levels are unlikely to increase in the short-term, but consumer demand will drop away the closer to Christmas we get. Some dealers and supermarkets will remain actively buying over the next few weeks, however, as they stock up for their post-Christmas sales. It should help keep some stability in pricing. It is unlikely that the upcoming General Election will have any impact on any buying patterns, particularly as it falls in a period when demand is low anyway,” he concluded.
