Andrew Mee, head of forecast UK at Cap HPI, sets out the forecast for used values next year and beyond.
Used car values for both petrol and diesel stayed strong in August, but electric vehicles (EVs) and some hybrids continue to struggle, says CAP HPI.
Pricing experts at Cap HPI have played down the potential of Mitsubishi’s decision to exit the UK having a negative impact on residual values (RVs).
Average used car sale values increased in July at the three-years/60,000-miles – the first increase in the month since 2009 and followed an even stronger June.
Used car values for models less than two years old have dropped in June while prices for older, cheaper cars have risen, according to Cap HPI.
By Andrew Mee, head of forecast UK at Cap HPI
Fleets urged to stagger vehicle returns to help lessen the impact of coronavirus on used car values, while dealers are warned not to cut new car prices.
Hitachi Capital Vehicle Solutions says the industry will have to ‘knuckle down’ if values are to be achieved in a post-pandemic used car market.
BCA Valuations reports that pre-sale valuations averaged 100.2% during the first weeks of the Covid-19 lockdown in virtual used car sales.
But the company urges caution, with volatile price movements expected over the next few weeks.
Cap HPI has introduced a package of specialist services to help fleet and finance companies through the Covid-19 pandemic.
A new service designed to help fleet and finance brokers grow, Broker Complete, has been launched by ODO and Cap HPI.
The number of vehicles with a mileage discrepancy has increased by 22% year-on-year, according to Cap HPI.
New company car tax rates will cost the Government £100m in lost revenue over the next two years, while drivers will face higher costs from new CO2 rating.
Used car values have fallen by 2.2% this month as retail and trade demand is affected by the Coronavirus crisis, according to Cap HPI.
Derren Martin, head of valuations UK at Cap HPI
Cap HPI says it will be ready for the introduction motoring taxes based on the emissions test in April 2020.
The cost of electric vehicle (EV) base models has risen by 18% since 2013, according to research from Cap HPI.
Leasing companies, which typically receive the CO2 data from third-party providers, are estimating emissions or trying to bring forward deliveries.
By John Clay, head of vehicle identification at Cap HPI
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