UK used car values in August remained resilient, with the average value movement at the three-year age point declining by just 0.6%, according to cap hpi, an automotive data company owned by US-based auto software company Solera.
This decline is slightly below the seasonal norm for August, which typically sees a 0.7% decrease.
The used car market has demonstrated robust performance over the past four months, with values dropping by an average of 0.5% per month and 2% in total. This compares favourably to 2018, dubbed ‘the year of the used car,’ when values fell by 3% over the summer period.
Battery Electric Vehicles (BEVs) continue to gain traction among retailers, reflected in improved auction conversion rates. BEVs currently average 1.3 sales attempts before being sold, compared to 1.5 attempts for petrol vehicles.
Derren Martin, director of valuations at cap hpi, noted that the price reductions in the final quarter of last year helped stabilise used car values, which had been rising since 2021. He added that while certain models and fuel types have seen value declines due to supply-demand imbalances, overall used car prices have remained stable throughout the year.
Retailers continue to face challenges in sourcing vehicles that meet their preferred criteria, particularly as inventory levels remain low due to increased stocking costs. This limited supply, combined with steady demand, has contributed to maintaining price stability.
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By GlobalDataAt the one-year age point, used car values also declined by an average of 0.6% (around £250), while older vehicles saw larger percentage drops, with 10-year-old models declining by 2.1% on average (approximately £85).
Among vehicle types, MPVs saw the largest decline, with values dropping by an average of 1.3%. However, this decrease aligns with historical trends for this time of year. Meanwhile, the main volume sectors — lower medium (C-Sector), supermini, and SUV — experienced declines of around 0.5%, underscoring the market’s overall stability.
Pure hybrids performed the best among fuel types, with values falling by just 0.2% on average, highlighting continued demand for vehicles that bridge the gap between traditional and fully electric powertrains. Petrol cars saw a 0.6% decline, while EVs and plug-in hybrids both experienced average drops of around 1.0%.
Although BEVs have seen monthly value declines for the past two years, the rate of decline has slowed, and some models, such as the Audi Q4 E-Tron Sportback and Tesla Model S, have even seen value increases at the three-year age point.
Looking ahead, Martin expressed cautious optimism for the final quarter of 2024. He noted that while last year’s significant value drops are unlikely to repeat, the market remains sensitive to potential disruptions, including the impact of manufacturers reducing sales of internal combustion engine vehicles to meet zero-emission vehicle mandates. Responsible remarketing practices will be essential to ensuring continued market stability.
