The used car market continued its slow start to the year, dropping 0.9% at the three-year, 60,000-mile mark, according to cap hpi.
With January and February also both posting decreases, overall decline in the first quarter of 2019 totalled 2.1%. The results also revealed a 3.3% negative swing compared with value movements in the same period last year.
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Derren Martin, head of UK valuations at cap hpi, noted that the price drops in the used car market cannot be attributed to economic uncertainty around Brexit. “The market has seen prices going up over the last year to 18-months, and there is still a theme of a reluctance to pay high prices and squeeze retail margins. We continue to witness a gentle, downward pricing realignment.”
Used electric cars increased in value during the month, with the Renault Zoe performing particularly well due to low volumes in the market – an 8% increase means that a one-year-old Zoe is worth almost 50% more than it was at the start of 2018.
Martin concluded: “In the short-term Brexit uncertainty is unlikely to affect the “carry on regardless” nature of the used car market. Only if increased new car tariffs become a reality or there is a sizeable economic downturn will used car values become significantly affected.”
In a separate report this week, Chris Plumb, electric vehicle expert at cap hpi, noted the growing popularity of electric vehicles and their increased market share.
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By GlobalData“Some of the smaller models make an attractive used buy with low purchase price and running costs. Additionally, many towns and cities offer incentives for drivers of electric vehicles such as free charging points and parking.”
A combination of factors – including the roll-out of clean air zones, cheaper running costs and increased charging points, incentives to drive and wider availability from manufacturers – were attributed to the growth.
