DATA provider cap hpi says it will continue to adjust residual values during Lockdown 2.0.
During the first pandemic lockdown, cap hpi stopped its valuation revisions during April and part of May due to the lack of robust data as UK plc was on full lockdown.
However, this time around, it says that many retailers and wholesale businesses will continue trading.
We have understandably received a lot of queries about whether we will be moving values during the lockdown that has begun this week. Our decision to continue doing so reflects the activity we continue to see across the market. Despite the recent dip in used values we often see this time of year, cars and vans are still selling both in trade and retail even during a period of heightened economic uncertainty. Retail and wholesale businesses are also better established to sell online this time around and we don’t anticipate volumes to reduce significantly.
Derren Martin, head of valuations, cap hpi
cap hpi reported that used values had dipped in October for the first time since March by an average of 2.1%.
Martin said that while the economic uncertainty has brought this decline into sharper focus, other traditional market nuances were also coming into play, such as the traditional value drop in the year’s final quarter.
He added:
“We want to assure customers that we will continue to move used values responsibly, based on trade sales data and retail advert evidence. In the unlikely event that sold volumes decline significantly, we can review this decision at any time and take swift action to ensure vehicles are priced accurately and easily during this time. Let’s keep the industry open, in a safe environment.”
Ralph Morton is the leading journalist in the leasing broker sector and editor of Broker News, the website which provides information and news for BVRLA-registered leasing brokers. He also writes extensively on the fleet and leasing market in both the UK and Europe.
