Used car values continued to drop this month, with a further 2.2% reduction at the three-year, 60,000-mile point according to Cap HPI.
Data experts don’t expect trend to continue after RVs fall steeply over recent months.
Pricing experts at Cap HPI say that average used car values for 3years/60,000 miles models fell by 2% in June.
Legislation is a “hard hitter” in determining residual values fleet decision-makers need to be sensitive to.
On average, used values fell by 3.1% in May at the three-year, 60,000-mile point, following a 2.3% drop during April, says Cap HPI.
It is likely that the proliferation of early churn on PCP cars is causing a bit of volume pressure in the retail market and thus also damaging ex fleet cars.
The used car market is undergoing a market correction, and the pace of change has accelerated in May, according to experts at Cap HPI.
The number of used electric vehicles (EVs) has grown by 27% since 2017, according to Cap HPI.
The new car position has been a disappointment for the fleet sector amidst hopes the economy would see an upturn as Brexit was settled. This has not been the case.
The Hyundai Tucson was the UK’s fastest-selling used car in March, according to the latest report by Indicata.
Economic uncertainty and tighter controls from the FCA make it essential to undertake more frequent valuations of fleet portfolios, suggests Cap HPI.
Demand began increasing for EVs in the second half of 2018 and has continued into 2019, according to Alex Wright, managing director of SVA.
The new Range Rover Evoque is predicted to achieve class-leading residual values, according to Cap HPI.
Average downward movements were visible for each mainstream sector, with MPVs and SUVs the worst affected.
Leasing companies are showing an unusual optimism around car residual values, Fleet News' FN50 reseach has revealed.
HPI has drawn up a list of the petrol hybrids with the strongest residual values.
Demand for used cars has remained high in October, with strong residual values for ex-fleet vehicles.
Used petrol cars reduced by an average of 1% in October, whereas diesels dropped by 0.3%, with consumers seeing the benefits of the economy and torque in diesel cars.
Used diesel and ex-fleet prices continue to rise at auction, while prices of hybrids and EVs have reached an all-time high, according to Aston Barclay.
Demand for used diesel vehicles is growing, with cars attracting higher prices at auctions and selling four days quicker than they did last year.
Fleet News offers a range of reports, whitepapers, in-depth features and manufacturer brochures to enhance fleet decision-makers' understanding of key issues and products.
Fleet News is published monthly, in print and digital formats.
Register now to see if you qualify for a free subscription.