Used car values outperformed seasonal expectations during July, according to Solera cap hpi.
Trade values at the benchmark three-year, 60,000-mile point reduced by 0.7% (£140) heading into August. The decline was better than the long-term August average of 1.0%, making it the fourth consecutive month in which values have beaten seasonal norms.
Chris Plumb, head of current car valuations at Solera cap hpi, said: “The headline movement only tells part of the story. Clean, retail-ready vehicles continue to attract strong demand, but older, higher-mileage stock is proving much harder to place.
“Values have held up well despite the increase in supply during the first half of the year. Buyers are still active, but they’re choosing stock much more carefully than they were 12 months ago.”
The latest movement is consistent with typical August trading. However, the market is becoming increasingly fragmented as performance varies sharply depending on a vehicle’s age, mileage, condition and fuel type.
Values at five years and 80,000 miles fell by 1.5%, while 10-year-old vehicles at 100,000 miles dropped by 2.8%. Solera cap hpi attributed this to rising wholesale supply, particularly from part-exchange vehicles, higher preparation costs and weaker demand for vehicles needing refurbishment.
Diesel again recorded the weakest performance, with values at the three-year benchmark down 1.1%, its third consecutive month as the poorest-performing fuel.
Hybrids were the strongest performer, edging up 0.3%, while battery electric vehicles fell by 0.2%, leaving them ahead of petrol, diesel and plug-in hybrids.
Solera cap hpi expects the market to follow normal seasonal patterns through August. Demand for well-prepared three- to five-year-old vehicles is expected to remain firm, but older, higher-mileage stock is likely to face further pressure.
