Used market turns positive in January, giving strong start to the year

Time 10:21 am, January 30, 2020

THE used car market saw overall values rise 0.6 per cent in January compared to an average decline for the last eight years of 0.4 per cent during the month, according to the data experts at Cap HPI.

The average rise for vehicles at the three years and 60,000-mile point was helped by the fact that small cars performed well, with average upward moves for both city cars (up 2.6 per cent / £120) and superminis (up 1.8 per cent /£111).

Jeremy Yea, pictured, senior valuations editor at Cap HPI, said: ‘January has, in most recent years, been the month where it can generally take a while for wholesale trading conditions to gain momentum, but the strong start to the year has broken this previous eight-year trend, and it is fair to say it has started with a bang!

‘Trade buyers have been out in force to buy up as much stock as physically possible. It is due to some operators going into the festive period with slightly less stock than in previous years, planned or unplanned, and the strong upturn in retail demand.’

The lower medium sector also saw an overall increase during the month of 0.8 per cent or £62. The popular sector continues to be in demand at the right age and mileage points. The data shows some younger low-mileage and late-plated vehicles have come under pressure, however.

The SUV sector saw an overall increase of 0.4 per cent. However, it is a mixed picture depending on size, mileage and age.

Large SUVs have dropped by 0.9 per cent at the three-year / £60,000 point, which demonstrates the less positive market sentiment on larger vehicles, but small and medium SUVs have increased in value at the same age and mileage, by 0.3 per cent and 0.6 per cent respectively.

Yea concluded: ‘The February wholesale market is usually one of strength and with this latest surge in demand and retail activity throughout January, we are likely to see another month of a strong used car market.

‘With wholesale volumes naturally declining throughout the month, supply and demand dynamics could come even more into play and could add some additional heat to an already heated and buoyant market place.’

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