Cap HPI is issuing a warning the automotive industry with used car price already falling an average of 1.5% since its last monthly editorial on October 27.
It’s urging car dealers to view values in real-time to keep up with the current fast moving market.
Cap HPI’s director of valuations Derren Martin told Car Dealer last week than values had dropped a worrying 4.2% in October – the biggest fall since 2011.
This drop equates to an average of £850 lost on each used car in what Martin referred to as a ‘significant realignment’.
In an announcement today, he advised car dealers to monitor live pricing so they have the most up to date information with his team adjusting thousands of prices daily.
He said: ‘The market is moving quickly, and the valuations team at Cap HPI is making thousands of adjustments to vehicle values on a daily basis.
‘Vendors and buyers must keep up to date on market movements through this transitional period. Our Live product is updated in real-time and gives users the most up-to-date insight available.
‘This is a market realignment, with values dropping by a cumulative 13.6% in seven months since April. It looks like November will see another reasonably large drop.
‘However, values could also start to stabilise, particularly if dealers and car supermarkets start to stock up, with an eye on January.
‘Keeping close to Live values is absolutely imperative in the current climate, with monthly values already out of date for many models.’
You can watch Derren Martin’s interview with James Baggott by clicking play at the top of this page.