The used car market steadied in June as the pace of decline in used values slowed to 1% reports Cap HPI.
Black Book Live reported a small drop of 1% at three years 60,000 miles, which shows a steadier picture than the previous month’s 1.9% drop.
The company is reporting an increase of pre-registration activity in the market. Volumes of 16 plate vehicles within Cap HPI's retail advertised data versus 15 plates at the same time last year show an increase of 10%.
City car volumes leapt by 66.3% in late-plate vehicles when compared to the same point in 2015.
Commenting on the trend, James Dower, senior editor of Cap HPI Black Book, said: “The slight easing of stock supply, along with relatively healthy demand led to more stable average values throughout the month with retail footfall, seemingly, not too adversely affected by the referendum.
“It is clear that some manufacturers have increased pre-reg activity dramatically and the volume of similar stock available to retail customers can only lead to downward pressure on nearly new values and a confused new/nearly new marketplace.
“Behind the averages, there were differing performances with some areas weaker than others. Pure electric vehicles continued to come under significant price pressure, reducing by 3.3% at the three years 60,000-mile point in June.
"It does appear that there is an apparent gulf between the new and the used car proposition for electric vehicles, with reluctance from retailers to purchase for stock.
"As we see more vehicles coming into the market place stock appears to be growing and taking significant time to find a home on the forecourt.”
The SUV sector moved down 0.7%, although dealers are now buying stock on a less seasonal basis than before with retail demand reasonably strong through most price ranges.
City Car continued to feel the pressure of oversupply with a significant number of 16 plate models in the marketplace, and this combined with attractive new car offers, meant a move down of values by 2.1% at three years 60,000 miles.
Lower Medium saw far more stability in Black Book live during June with a downward movement of 1.2% - significantly lower than the 2.6% we saw during the previous month at three years 60,000 miles.
The MPV sector performed in line with expectations with overall values reduced by 1.1% versus the previous month’s decline of 1.6% at three years 60,000 miles, further underlying the sense of greater stability.
Dower continued: “The late-plate effect on Supermini is still a factor but to less of a degree than City Car. Demand remained strong, but there was more than enough choice available for buyers. This sector saw a movement of 2.1% at three years 60,000 with greater signs of stability than in the previous month and was relatively in line with the movement that we would expect at this time of the year.”