The UK’s used car market saw a usual seasonal dip in December, with the average price of a three-year-old, 96,560km vehicle falling by 1.5%, or £260 ($322.23).
According to data from Cap HPI, approximately 60% of vehicles in this category saw a decrease in value, while 35% stayed the same and 5% saw an increase.
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December’s decline was milder than the 2.1% drop in the year-ago period.
In 2023, the market saw sharper reductions of 4.2% in the earlier months, leading to a total decline of 10.5% in the final quarter.
In contrast, the last three months of 2024 showed greater resilience, with a more moderate cumulative decline of 4.2%.
Cap HPI head of current car valuation Chris Plumb said: “In line with the retail market, December’s wholesale activity has entered the typical seasonal slowdown, with conversion rates and performance against cap values gradually declining throughout the month.
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By GlobalData“This trend closely mirrors previous Decembers. While some trade buyers remain active, they are highly selective, focusing only on the best fresh stock offered by vendors. Key factors influencing purchasing decisions include vehicles with clean mechanical and cosmetic condition reports, good specifications, provenance, desirable colours, low mileage, and competitive pricing.”
Fuel types followed similar performance trends, with petrol vehicles seeing the largest decline for the second month in a row, down by 1.8%, or £270.
Plug-in hybrid electric vehicles (PHEVs) saw a decline of 1.6% (£350), while battery electric vehicles (BEVs) dropped by 1.4% (£280).
Hybrid-electric vehicles (HEVs) and diesel vehicles showed more stability, each registering a smaller decline of 1.2% (£210).
The wholesale BEV market has evolved significantly throughout last year, with auction sales attempts now on par with those of other fuel types.
In 2024, used BEV volumes have reached a record, rising by 90% compared to 2023.
Total sales for 2024 have surpassed the combined volumes from 2019 to 2023.
In the retail sector, consumer demand showed a seasonal slowdown, with the average days to sell increasing slightly.
Cap HPI’s retail advert data revealed an average of 43 days to sell in December, up from 41 days in November.
Plumb concluded: “The outlook for January, and beyond, is optimistic and largely positive. Low supply will continue to play a key role in maintaining healthy competition and demand for used car stock, while projected consumer demand remains encouraging.
“2024 has been a successful year for both vendors and retailers. Reduced used car stock volumes returning to the market and healthy retail consumer demand have underpinned market stability. At this stage, there is no reason to believe that the first quarter of 2025 will differ significantly in terms of demand and overall stability.”
