Cap hpi has warned the industry to expect some pressure on used car values in the future, after a relatively stable August.
In August, strong retail demand supported used values, with a reduction of 0.7% for three year old vehicles on 60,000 miles.
Cap hpi said the stable market was due to consistent performances across sales channels, and was steadier than July. Auction activity remained strong in the month, the company noted, with good attendance levels.
Future pressure
Looking ahead, however, James Dower, senior editor of cap hpi Black Book, noted two potential ‘pressure points’ in the market, which could cause some volatility.
He said: “There are likely to be two pressure points moving forwards, the nearly new market and also potentially higher volumes of stock entering the used car arena. The majority of manufacturers still have significant volume aspirations for the remainder of the year and the new car retail performance in September will dictate just how far reaching the effect of pre-registration activity will be over the used car market in the final months of the year.
“With ongoing reports of dealer stock at such high levels, another wave of pre-registered cars could continue to put pressure on cash flow and stocking plans leading to increased stress on margins and profitability. Stock management, stock turn and realistic retail pricing have always been key to used car success and will be critical throughout the month. Black Book Live will continue to report market movements on a daily basis.”
