October Sees First Fall In Used Car Values Since March 2020
Used car values dipped by 2.1% in October according to the latest analysis from CAP HPI. It’s the first fall since March 2020 and shows that wholesale sold prices fell across the board as trade buyers became more cautious about paying higher prices. Derren Martin, head of valuations UK at CAP HPI, commented: “In October the trade market moved sooner and quicker than the retail one, making it difficult to follow the market decline, for those that price purely off advertised prices. If trade prices are on the decline, live, daily values based off wholesale data are essential for vendors and buyers alike, so as not to get caught off-guard with pricing”.
He went on to say….”the market appears to now be undergoing some realignment. There are several factors at play. Values do tend to drop in the final quarter of the year, by varying degrees, as demand drops away in the run-up to Christmas and supply levels usually increase. We do appear to be experiencing that drop off in trade demand, but it is exacerbated this year by economic uncertainty, high prices and reasonable predictions that the consumer appetite for used cars that has driven up prices cannot last forever.”