Used car values dropped by 1% in August, marking the smallest decline since March, new figures from automotive data firm Cap hpi have revealed.
The decline in August remains the largest drop in the month since 2011, but Cap hpi says the figures point to a market that is stabilising after a troubled period for the industry.
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Derren Martin, head of UK valuations at Cap hpi, said: “Except for January, each month this year has seen a drop in excess of the same month in the previous three-years. The used car market pricing realignment has been ongoing since the end of 2018 and accelerated from Easter onwards. Our Live values data points to a more stable period ahead as demand and values are more closely aligned.”
Supermini values saw the smallest decline, with a fall of just 0.2% at three-years, 60,000 miles, equating to an average of less than £10. Cap hpi noted that the market has seen an increasing demand for smaller petrol cars.
Upper medium cars reduced by more than any mainstream sector with a 1.6% average drop equating to £160 in monetary terms. While SUVs dropped in value by an average of 1.0% or £120.
Average diesel car values dropped by more than their petrol counterparts, 1.1% compared to 0.8%, which is an ongoing trend through 2019.
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By GlobalDataMartin added: “Diesel values are not dropping off a cliff, but they are under more pressure than they were last year and more than petrol cars. The values of electric vehicles remain a mixed bag. Values for both the Hyundai Kona Electric and Kia E-Niro have risen to reflect the limited available volumes in the used market and extended lead times when ordering from new.
“Of the volume models, the older Nissan Leaf continues to be under pressure in the wholesale market, as the choice remains plentiful, plus the newer model is more popular due to the additional battery capacity.”
