Used car values remained resilient in April with only modest declines recorded despite wider economic concerns linked to the Iran conflict, according to Solera Cap HPI.
Values at the benchmark three-year, 60,000 mile point fell by 1.2% in Cap Live during April, equivalent to around £220 and broadly in line with long-term seasonal trends.
Seasonal trends return
The latest movement compares favourably with the long-term April to May average of -1.6% when excluding the atypical pandemic years of 2020 and 2021, indicating stronger than expected market resilience.
At one-year-old, values declined by 1.3% or around £385, while older vehicles performed slightly better, with five-year-old cars down 0.8% and values broadly flat at 10 years.
Across sectors, most segments saw declines at the three-year point, with the exception of seasonally strong sports, convertibles and coupe cabriolets.
Superminis recorded the steepest percentage fall, down 1.9% or around £195. Within the segment, HEVs saw the largest drop at 2.9%, followed by diesel at 2.2% and petrol at 1.9%, while BEVs proved more resilient with a smaller 0.9% decline.
BEVs show signs of recovery
Executive MPV and SUV segments followed with declines of between 1.4% and 1.7%. Within SUVs, large models proved the most resilient, down 1.0%, compared with 1.5% and 1.6% for small and medium SUVs respectively.
Weaker performances were seen among some high-supply models, including Land Rover Range Rover, Discovery Sport Hybrid, Hyundai Bayon, MG HS and Peugeot 2008, reflecting continued selectivity from trade buyers.
Chris Plumb, head of current valuations at Solera Cap HPI, said: “After a period where monthly movements had been less favourable to seasonal norms, April felt like a return to more familiar market conditions following the Easter bank holiday period.
“BEVs in particular showed a late improvement towards the end of the month, and while it remains too early to draw firm conclusions, there will be some hope that this momentum can carry into the months ahead.”
Among electric vehicles, models that had previously experienced sharp declines led April’s strongest gains. The Subaru Solterra rose by 5.3% or around £600, followed by the Mini Cooper at 5% and the MG5 at 4%.
This marked the strongest April to May movement for BEVs in several years, compared with declines of 2.7% last year, 3.7% in 2024 and 4.7% in 2023.
Diesel was the weakest performing fuel type overall, with values down 1.3% at the three-year benchmark, as retailers remain cautious about stocking diesel models. PHEVs declined by 1.1%, while petrol and HEVs both fell by around 1.0%.
Plumb added: “Looking ahead, while performance against cap values has been weaker than would typically be expected so far this year, remarketers remain relatively upbeat. Stock levels and, more importantly, conversion rates have held up well, helping to keep vehicles moving through the system.
“However, most are now anticipating some softening in the weeks ahead, which would place further pressure on values and increase the need to keep stock flowing, whether through physical auction lanes or digital channels. Focus will remain on BEV values to assess whether the recent improvement seen on certain models can be sustained into and throughout May”.
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