Low supply of vehicles and steady demand saw used vehicle values stabilise in October, according to figures from cap hpi.

October Live values saw a slight dip of -0.6% at the three-years, 60,000-mile point which is the same as in the same month last year, but less of a drop than in any other October since Live was introduced. This 0.6% drop is equivalent to just over £100 on average.

Cap hpi found that large volumes of part-exchanges and fleet returns have failed to materialise in the open market, due to relatively low registration volumes in September. However an increase in pre-registration activity and short-cycle volumes from registrations in Q1 has meant that values of six-month and one-year old vehicles have been adversely affected when compared with older cars – dropping by 0.9% and 0.8% respectively.

In monetary terms, these amount to around £250 reduction for both, with petrol values again being hit harder than diesel ones.

“It is good to see stability return to the used car market,” said Derren Martin, head of valuations UK at cap hpi. “However, some manufacturers have continued to push pre-registrations and other short-cycle channels, which inevitably can have an effect on future residual values, if cars returning into the used car market are not remarketed responsibly.”

The data also shows diesel cars are selling quicker than petrol ones on retail forecourts. Petrol hybrids have dropped in value similarly to diesel cars, generally outperforming their petrol equivalents, in terms of percentage of list achieved too. These are increasing in demand in the used car market and are now no longer seen purely as desirable from a new car point of view.

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Electric vehicle volumes continue to increase in the market, but several models have been under price pressure. The VW Golf, BMW i3 and Nissan Leaf have experienced drops in value. In particular, the Leaf has seen an increase in volumes of two-year-old product, those with a 30KWh battery – supply has certainly outweighed demand, said cap hpi.

Martin concluded: “So far this year it has been more important than ever to track values in real-time, with a particularly volatile period from March through to August. It is just as important as the year draws to a close to do likewise. Different models, ages and fuel-types can vary quite dramatically in how their prices react in the used car market.”

Separate research from Aston Barclay found that Q3 saw the used car market gain significant momentum, with demand very strong and conversion rates rising to the mid 90 per cent during September.

Average prices for EVs and hybrids reached their highest point since 2017 at £14,012, while sub 24-month old late and low cars reached their highest point in 2019 at £14,738.

Demand for EVs has continued to build at auction and online, according to Aston Barclay, with buyers now targeting electric stock – particularly in the London area. Average diesel and petrol prices meanwhile fell marginally to £7,390 and £4,213.

Martin Potter, managing director of auctions at Aston Barclay, stated that Q3 was very strong for the used car market. “The majority of sales across our network were delivering mid to late 90% conversion rates and demand for stock was extremely buoyant.

“The used volumes we expected to arrive in the market in Q3 on the back of a record new market in 2016 didn’t materialise which also helped fuel the market as did sluggish new car sales during September.

“We are seeing average fleet stock being replaced at 41-42 months so we may start to see Dealers are investing more time in used cars and are now carrying a good balance of stock from 12-60 months to ensure they appeal to as wide an audience as possible.

“That looks set to remain as new car sales remain challenging with the uncertainty of Brexit continuing to unsettle consumer confidence,” said Potter.