Automotive data expert Cap HPI is reporting that used car values fell by 1% in August, the smallest fall since March.
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.
The used car market is undergoing a market correction, and the pace of change has accelerated in May, according to experts at Cap HPI.
Average values for fleet and lease, dealer part-exchange and nearly-new vehicles all improved compared to the previous month’s figures, says BCA.
February saw the first downward movement of used car values in the month since 2008 with a fall of 0.6%, according to Cap HPI.
Average downward movements were visible for each mainstream sector, with MPVs and SUVs the worst affected.
Average used car values fell by 1.7% in December as demand weakened, according to Cap HPI.
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 car values too an expected dip in July, as a result of the holiday period, but remain strong with year-on-year values rising by £501.
Some petrol variants could have been bought as a used vehicle, driven 10,000 miles in the past 12 months, and then sold for more than the purchase price.
Zero emission electric cars enjoyed a surge in popularity in the used market, with demand rising 33.8% to 2,927 units, followed by hybrids, which rose 14.1%.
Fears of a crash in used diesel car values prompted by air quality concerns “should now have passed”, says the Vehicle Remarketing Association (VRA).
The average value of used cars rose by an average of 5.3% during the first quarter of 2018, according to Autorola UK’s online portal.
Diesel resale values are expected to remain stable during 2018, despite fears that consumers could be driven towards choosing petrol or electrified alternatives.
Used car values rose by 0.4% in March due to strong demand, according to Cap HPI.
Values for used diesels grew by 5.95% in February, according to Cox Automotive.
In mid-2016, around 32% of its vehicles were sold online through its Motortrade platform but, by the end of last year, this had increased to nearly 60%.
Aston Barclay’s 2017 Market Insights report suggests that used diesel cars are showing no signs of losing their appeal.
The outcome of Brexit negotiations is hanging over the economy, creating uncertainty that makes business planning very difficult, says chairman Glenn Sturley.
Cap HPI says that changes to VED will equate to increases of around £20 for the first year and will have little impact on diesel registrations and values.
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.