According to experts at cap hpi, there has been a noteworthy positive trend in average used car values for vehicles aged three years with 60,000 miles on the odometer. The modest increase, standing at 0.7%, equivalent to £50, signifies the first surge since March 2023.
This positive movement ranks as the fourth-largest uptick in February since the initiation of Cap Live in 2012. Over the past 11 years, the average movement in February has been a marginal increase of 0.2%.
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Values at the one-year age point saw a minimal increase of 0.2%, while those at the five-year mark experienced a 0.6% rise. Conversely, older cars faced a 0.6% decline, influenced by some high-mileage vehicles proving relatively unpopular.
Derren Martin, director of valuations at cap hpi, said: “Overall, the average movements in Cap Live values point to a stable-to-strong used car market, following a relatively normal seasonal pattern for the first two months of the year.”
Martin added, “The market remains strong, retailers are busy, and wholesale supply levels are well under control. With the new 24 plates from 1 March, there will be increased volumes in the used market, from fleet returns and part-exchanges, as we progress deeper into the month and beyond.”
Furthermore, Martin anticipates increased volumes in the used market but suggests any adverse effects on used values are unlikely until April at the earliest.
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By GlobalDataWithin the mainstream sector, superminis demonstrated strength, with a commendable 2.4% increase at both one and three years old, equivalent to £375 and £250, respectively. Notable performers include the Hyundai i20, Renault Clio, Seat Ibiza, and Vauxhall Corsa, all experiencing significant value increments.
However, battery electric vehicles (BEVs) presented a contrasting picture, with a 1.7% drop, approximately £375, in three-year-old vehicles in Cap Live in February. Despite this, certain BEV models, such as the Seat Mii, Renault Zoe, and Mercedes EQA, showed positive movements.
BEV volumes are on the rise, with cap hpi receiving nearly double the amount of sold data compared to the same period last year. Although BEVs entering the used wholesale market are selling well, their values are facing a decline. In contrast, petrol and diesel cars are witnessing an increase by 1.2% and 0.5%, respectively.
Derren Martin concluded: “March is generally a month where values do not move by much, with the strongest movement being 0.5% up, in both 2023 and 2014. In 2022, values dropped by 2.1%, so, there can be variation, but this time around, there is no reason to suggest anything untoward or anything other than a continuation of small positive movements.”
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