Healthy retail demand and strong auction conversion rates are characterising a stable used car market, according to experts at cap hpi.
The overall market remains robust with a slight decline of 0.2%, while trade values for petrol vehicles at three years and 60,000 miles declined just 0.1%, and diesel fell by 0.2%.
BEVs continue to be the most volatile area of the market, dropping by an average of 1.1% in the month to date, with some models like the Citroen C4X, Nissan Leaf & VW ID.3 dropping by 4%. While the Kia EV6 & Mercedes Benz EQC have increased by 2% and 1% respectively.
Commenting on the market, Derren Martin, director of valuations at cap hpi, said: “The market is in a healthy state at the moment with strong retail and wholesale demand underpinning values. While many dealers remain wary of stocking BEVs, they present good value in the wholesale market and offer a good retail margin.”
The automotive data firm reports that sold wholesale volumes are close to pre-COVID levels, and retail margins remain relatively healthy, as advertised prices have not dropped to the same degree as trade over the last five months.
The report follows data for February, which showed an increase of 0.7%, the first rise since March 2023. The increase was the fourth largest upward movement in February since Cap Live was launched in 2012. The average movement over the last 11 years is a slight increase of 0.2%.
Derren concluded: “Over the coming weeks, we expect a stable market. Retailers are busy, and wholesale supply levels are well under control. With the new “24” plate entering the market this month, there will be increased volumes in the used market, from fleet returns and part-exchanges, as we progress deeper into the month and beyond.
“There are strong new car offers, particularly on BEVs, as manufacturers chase market share whilst attempting to hit stringent ZEV mandate targets. However, these increased volumes are unlikely to adversely affect used values until April at the earliest, and even then, any effect is unlikely to be overly harsh.”