USED car prices remain strong in July, with a drop in values of only -0.5 per cent for vehicles at three years and 60,000 miles.
That, compared to the average seasonal decline of -1.4 per cent since 2013, stands the market in a good position for what is expected to be a record year for used car sales, according to automotive data experts Cap HPI.
This has been attributed to demand driven by dealers, which are increasingly turning to the used sector to bolster margins.
Commenting on the trend James Dower, senior editor of Black Book at Cap HPI said: ‘July bucked the trend and average values are the most stable we’ve seen in July since 2012. Going forwards, we are likely to see stability through August as the wholesale market potentially begins to see stock levels flatten a little. However, there is a potential for some significant increases in de-fleet activity through Quarter four of the year that may put pressure on values.’
The data company reports that diesel values have fallen at a greater rate when compared to petrol in 2017, but values hardened in July.
He added: ‘While diesel values continued to slip in July the trend was far less pronounced and average diesel movement at three years 60,000 miles was -0.8%. When compared to the same point last year which saw a -1.7% erosion there is no doubt that this is a significantly stronger performance.’
Behind the averages performance is sector specific with smaller cars seeing diesel derivatives erode at a higher than average rate with City Car diesel movement at three years 60,000 miles downward by -1.2 per cent and Supermini down by -1 per cent.
The average petrol movement into August saw a reduction of only -0.1 per cent at three years 60,000 miles and, compared to the decline of -1.6 per cent at the same point last year continues to reflect the increased consumer appetite of petrol models.
Petrol hybrid vehicles saw average prices at three years 60,000 miles increase by 0.1 per cent, and this is the second month in a row that the average prices have risen. Toyota Yaris (12-) Hybrid saw values move up by 3 per cent at three years 60,000 miles.
Dower concluded: ‘While it appears that the rest of the summer looks set to remain stable, November and December have the potential to see prices erode at a higher rate than witnessed in previous years. For those who subscribe to cap live, we will continue to provide market leading values on a daily basis.’
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