9:15 am, January 2, 2025
Used car values fell in the final month of 2024 as demand dwindled over the festive period.
That is according to new data from valuations experts Cap HPI, which has been pouring over December’s trade figures.
The firm’s experts found that the average value of a three-year-old, 60,000-mile vehicle decreased by 1.5% last month – the equivalent of £260 per car.
The data also showed that more than half (60%) of all vehicles within that profile saw a reduction in value, with only 5% rising in price and 35% remaining stable.
The figures were largely in line with anticipated levels, with the industry experiencing its traditional seasonal slowdown.
In the final quarter of 2024, values dropped by 4.2%, with Cap’s bosses saying the result ‘highlights the robustness of the market’.
Commenting on the data, Chris Plumb, head of current car valuation at Cap HPI, said: ‘In line with the retail market, December’s wholesale activity has entered the typical seasonal slowdown, with conversion rates and performance against cap values gradually declining throughout the month.
‘This trend closely mirrors previous Decembers. While some trade buyers remain active, they are highly selective, focusing only on the best fresh stock offered by vendors.
‘Key factors influencing purchasing decisions include vehicles with clean mechanical and cosmetic condition reports, good specifications, provenance, desirable colours, low mileage, and competitive pricing.
‘Vehicles requiring mechanical repairs or significant cosmetic improvements continue to pose challenges for vendors.
‘Such stock often requires multiple attempts to sell and typically achieves lower returns compared to cap clean values.
‘This trend has been consistent throughout the year, emphasising the importance of accurate vehicle assessments to ensure quick and efficient stock turnover.’
Days to sell up as petrol values take hit
When it came to breaking the data down by different fuel types, petrol vehicles recorded the largest decline for the second consecutive month, with a dip of 1.8% (£270).
They were closely followed by PHEVs, which declined by 1.6% (£350), and BEVs, which slipped 1.4% (£280).
HEVs and diesel vehicles performed best, both registering declines of 1.2% (£210).
Reflecting the seasonal slowdown in consumer demand, Cap also reported a a slight increase in average days to sell, with the figure rising from 41 days in November to 43 days in December.
Looking ahead, Plumb concluded: ‘The outlook for January, and beyond, is optimistic and largely positive.
‘Low supply will continue to play a key role in maintaining healthy competition and demand for used car stock, while projected consumer demand remains encouraging.
‘2024 has been a successful year for both vendors and retailers. Reduced used car stock volumes returning to the market and healthy retail consumer demand have underpinned market stability.
‘At this stage, there is no reason to believe that the first quarter of 2025 will differ significantly in terms of demand and overall stability.
‘As always, Cap Live is a vital tool for monitoring the market in real-time and is essential for making informed buying or selling decisions.’
