A CONSIDERABLE number of used city cars, electric vehicles (EV) and SUVs are rising in value, according to Cap HPI.
The data analysis company says that demand caused used car values to rise 0.4 per cent in March, while average values are up 1.2 per cent since the start of 2018.
This is in contrast to 2017, when used car values declined 0.7 per cent. In fact, the figure is currently at its highest point since 2014, when it went up 0.8 per cent.
City cars are one of the strongest groups of used vehicle at the moment. If a Skoda Citigo were purchased in March 2017 with 30,000 miles on the clock and then driven another 10,000 miles, that example would now be worth an additional £200 compared with what the buyer paid for it one year ago.
Other city cars, such as the Kia Picanto, Seat Mii and Toyota Aygo, are in the same boat. In particular, small EVs, such as the Peugeot Ion, Smart ForTwo Electric and the Citroen C-Zero, are especially popular.
SUVs now account for nearly a third of all new car registrations and that is reflected in the used market, where values for small and medium-sized models are holding up particularly well.
Derren Martin, head of current valuations at Cap HPI, commented: ‘What we are seeing is some cars in particular sectors increasing in value over a relatively short period.
‘The scale of this is unprecedented, as cars are generally regarded as a depreciating asset. Some consumers are now starting to reap the rewards of picking up a vehicle 12 months ago, putting 10,000 miles on the clock and still seeing the vehicle’s value rise very steadily.
‘The sectors showing the main areas of appreciating values continue to be city cars, superminis and lower medium-sized cars. Also, some petrol and hybrid SUV prices in the used market have shown real strength in recent months – there is strong demand and currently relatively low supply.
‘Drivers are beginning to warm to EVs as confidence grows in availability and reliability. The increase in demand for smaller vehicles, that is pushing up values, is partly as a result of consumers downsizing, but also a desire for petrol vehicles.’
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