Used values decline despite robust first quarter

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April saw average car values at the three-year, 60,000-mile point, decline by 1.5% (c. £300). This decline follows an overall rise in values of 0.5% over Q1, reflecting a softening in demand and an increase in supply.

Values at the one-year age point fell by 1.3%, at five years values fell by 2.0% and at the 10-year point values fell by 3.0%.

Derren Martin, director of valuations at cap hpi, said: “The market feels healthy, but a number of retailers have expressed that demand is slightly below where they had hoped and budgeted for, after a robust first quarter.

“Petrol-engine vehicles have continued to be the flavour of the month, with dealers comfortable that they will sell these quicker than other fuel types. Interestingly, BEVs and diesel-engine cars have been the slowest to sell, making dealers wary about overstocking.”

The trade and retail markets in the run-up to Easter were healthy, with a slight dip after the Bank Holiday weekend which is in line with what happens at this time of the year, says cap hpi.

Upper medium, or D-Sector, car values experienced the most significant decline, BEV and diesel models were heavily impacted. A reduction of volumes in this sector has resulted in its overall share of the used market halving over the last 10 years.

BEV values dropped by 3.7% (c.£780), compared to petrol at 1.0% (£200) and diesel at 1.9% (£380). This represents the largest BEV value drop since June 2023.

Martin said: “Battery Electric models will likely continue to see mixed-value moves. There have been some incredibly large drops this month, which may help stimulate demand, but there could also be some large movements to come for some cars as they continue to find their place in the market.”

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