Used cars result stronger than expected as values drop by 1.5 per cent in May

Time 5:08 am, May 26, 2017

INCREASED stock levels and a seasonal dip in demand saw average values at three years 60,000 miles slide 1.5 per cent, according to Cap HPI.

The decline is not as sharp as last year which saw a drop of 1.9 per cent against an average downward movement from 2013 of 1.7 per cent.

senior editor of Black Book at Cap HPI James Dower said: ‘This was a stronger result than most would have perhaps expected. It is also worthwhile noting that monthly value movements by fuel type showed that petrol continued to outperform diesel. The strength in petrol performance looks set to continue alongside a slight easing in diesel values year-on-year. Without a clear indication of any final legislation on diesel, there is no reason to expect diesel values to fall dramatically.’

The SUV sector continued to grow in volume and saw the most pressure at the three years 60,000 mark, dropping by 2.2 per cent.

Dower said: ‘While there is still significant demand for this sector, there is no doubt that the high volumes of stock available have led to the weakening in value.’

MPV had a larger than average reduction at the three years 60,000 level moving back by 2.1 per cent. There is some evidence to suggest that customers who usually purchase MPV are moving into the SUV market.

Coupe Cabriolet and Convertible continued to benefit from the seasonal increases easing up by 0.3 per cent and 0.5 per cent respectively at three years 60,000 miles.

Dower concluded: ‘The high levels of stock being held at both dealer and the wholesale level will inevitably cause some downward pressure on values as we move through June. The market has become used to seeing later plate volume entering the market at similar times year-on-year. There are still volumes of rental cars to be de-fleeted, and we are likely to see growing volumes of short cycle vehicles in the wholesale market over the coming months.’

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Rebecca Chaplin's avatar

Rebecca has been a motoring and business journalist since 2014, previously writing and presenting for titles such as the Press Association, Auto Express and Car Buyer. She has worked in many roles for Car Dealer Magazine’s publisher Blackball Media including head of editorial.

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