A 0.5% fall in used values over the first nine days in May was observed at cars aged three years and 60,000 miles on the clock, according to the latest mid-month analysis from Cap HPI.
On the current trajectory, Cap HPI said the data points to a potential 1.3% reduction by the end of May, a trend that is broadly in line with the pre-Covid five-year average.
Hybrid vehicles (HEV) are the strongest fuel type, with a fall of 0.2%, while petrol and diesel declined 0.3% and 0.4% respectively. Plugin hybrid (PHEV) is also down by 0.7%.
With used electric vehicle volumes continuing to increase in the market, they are again seeing a reduction of 1.9% in value month-to-date. April was a record month for used EV wholesale volumes, and year-to-date figures now sit at just over 60% of last year’s total volume.
Commenting on the market, Chris Plumb, senior valuations editor at Cap HPI, said: “The overall sentiment of the industry suggests that the wholesale and retail markets are still well aligned. The market remains steady and in line with historic seasonal trends. However, with EV volumes continuing to rise, there needs to be a focus on driving/incentivising demand from consumers to expand with this market.”
When examining the data by sector, couple cabriolet is currently performing the best at an increase of 2.5%. Convertible also shows a small increase of 0.4%, which comes as no surprise given the recent improvement in the weather and seasonal theme of the market. The largest decline was seen within large executive at 1.5%, closely followed by city car at 1.3%.
Plumb concluded: “The used electric vehicles market will continue to be fragmented as it grows and more manufacturers compete on pricing to meet ZEV mandate requirements. Strong new car offers and registration activity will likely continue, which could further affect values. However, the used offering on many models now looks extremely good value for money and should be considered by anyone looking to make the switch. ”