STRONG retail demand has supported used values in August with a reduction of 0.7 per cent at the three years and 60,000-mile mark, according to Cap HPI.
The automotive data experts say the stable market is due to consistent performances across sales channels, and is steadier than the 1.6 per cent reduction experienced during July. The figure mirrors September 2015, which saw an overall decline of 0.6 per cent.
Auction activity has remained strong and despite the holiday season, the halls have experienced good attendance levels and the balance of this alongside an easing in stock levels led to conversion rates holding well through August.
City car performance has been unusually strong with a reduction of only 0.7 per cent. When compared with the average reductions of 2.1 per cent over the previous four months, it found some traction moving into September.
James Dower, senior editor of Cap HPI Black Book, said: ‘The unusual strength of city car may temper over the coming months. It’s a sector that is usually significantly impacted by tactical registrations alongside aggressive new car marketing campaigns, so while the data has led to only slight erosion into the month, an eye must be kept on activity over the next few weeks.’
SUV remained stable with an average downward movement of 0.4 per cent into September at three years / 60,000 miles.
Dower said: ‘Supermini saw values fall by 0.7 per cent, and while the price has remained relatively stable, a keen eye must be kept on September new car activity in this sector as we have observed some of the historical tactical registration activity impacting values.’
The upper medium sector performed in line with the overall average movement of 0.7 per cent reduction at three years 60,000 miles. Diesel derivatives within the data moved down by one per cent, in contrast to petrol examples that averaged a 0.2 per cent reduction, as higher volumes of diesel vehicles found their way into the market.