January is seeing a relative stabilisation of used car values following a difficult last quarter for the market, according to cap hpi experts.
At the mid-month point, values have fallen by just 0.4% in Cap Live since Christmas day, demonstrating signs of resilience with strong conversion rates at auction, with many direct sellers increasing their selling prices.
Commenting on the data, Derren Martin, director of valuations at cap hpi, said: “Retailers have had a decent start to the year, which is reflected in the wholesale market. Overall, the market is looking more positive than it has in months.
“Dealers are purchasing vehicles in larger quantities than during the last quarter of 2023, and consumer confidence was reported to have hit a three-month high in December. It’s also likely that falling interest rates will help dealers with stocking costs and consumers’ monthly payments going forward.”
Data shows that EVs and PHEVs are the weakest fuel types in terms of valuation, with drops of 1.1% and 1.0%, respectively. Martin pointed out that the devil remains very much in the detail however, with some models dropping in value much quicker than others, and the Renault Zoe even going up in value in Cap Live.
Martin concluded: “There are lots of positives to take from the start to the year. However, consumer confidence does remain fragile, and there are plenty of cars swilling around that did not sell at the back of last year. Supply will continue to outweigh demand in the short-term, and, on average, we expect to see smaller drops in used values over the coming weeks.”