THE used car market experienced its typical December slowdown in 2024, with the average value of a three-year-old vehicle with 60,000 miles dropping by 1.5% (£260), according to the latest data from cap hpi.
This seasonal dip saw 60% of vehicles in this category depreciate, while 35% held steady and 5% actually increased in value. The trend aligns with the broader retail and wholesale sectors, echoing the usual festive lull.
Market resilience shines through
Despite the December dip, the used car market demonstrated considerable resilience in the last quarter of 2024. Cumulative depreciation for this period stood at -4.2%, a significant improvement compared to the -10.5% drop witnessed during the same period in 2023.
“December's wholesale activity mirrored typical seasonal trends, with conversion rates and performance against cap values gradually softening throughout the month. This pattern closely reflects previous Decembers.”
Quality remains key for trade buyers
Plumb highlighted the discerning nature of trade buyers in the current market. “While some remain active, they are highly selective, focusing on the best fresh stock with clean condition reports, good specifications, provenance, desirable colours, low mileage, and competitive pricing,” he explained.
Vehicles requiring repairs or cosmetic work continued to present challenges, often necessitating multiple sales attempts and fetching lower returns. “This trend has been consistent throughout the year, emphasising the importance of accurate vehicle assessments to ensure quick and efficient stock turnover,” Plumb added.
Fuel type performance
Petrol vehicles recorded the steepest decline for the second consecutive month at -1.8% (£270). PHEVs followed at -1.6% (£350), with BEVs next at -1.4% (£280). HEVs and diesel vehicles performed the best, both registering declines of -1.2% (£210).
BEV market shows promise
Despite an increase in retail days to sell, the wholesale BEV market displayed encouraging signs throughout 2024. Auction sales attempts for BEVs now mirror those of other fuel types, and the year is poised to set new records for used BEV sales volumes, marking a 90% surge compared to 2023.
Retail market holds steady
Reflecting the seasonal slowdown, average days to sell in the cap hpi retail advert database saw a marginal increase from 41 days in November to 43 days in December, indicating relative stability.
Positive outlook for 2025
Looking ahead, Plumb expressed optimism: “The outlook for January, and beyond, is largely positive. Low supply will continue to play a key role in maintaining healthy competition and demand for used car stock, while projected consumer demand remains encouraging.”
He concluded: “2024 has been a successful year for both vendors and retailers. Reduced used car stock volumes and healthy retail consumer demand have underpinned market stability. At this stage, there is no reason to believe that the first quarter of 2025 will differ significantly in terms of demand and overall stability.”
Key takeaways from December used car market 2024
- December saw the usual seasonal slowdown in the used car market.
- Despite this, the market showed resilience in Q4 2024.
- Trade buyers remain highly selective, prioritising quality stock.
- The BEV market continues to mature.
- Industry experts are optimistic about the market’s prospects in 2025.
Catch up with last month’s used car values
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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.
