THE latest cap hpi report on the January used car market shows significant improvements compared with December.
Values at the three-year, 60,000-mile benchmark showed a minimal decline of just 0.1%, translating to an average decrease of just £60. This -0.1% average movement is the joint fourth strongest on record for February going back to 2012 when Cap Live was introduced, reports cap hpi.
“Had the monthly deadline been a few days later, it is quite possible that this monthly change could have been flat or even a slight positive. Cap Live subscribers may see this in the figures in the coming days and may have already noticed it in the brief period between the drafting of this overview and the start of February.”
Jeremy Yea, Senior Valuations Editor at cap hpi Tweet
At the one-year mark, values declined, slightly surpassing the three-year benchmark with a drop of 0.3%, equating to about £150. This decrease in values for younger cars can likely be attributed to appealing new car offers and considerable discounts on pre-registered models, added Yea (pictured above).
Looking at the five-year and 10-year age points, there were increases of 0.4% (or £10) and 1.6% (around £60), respectively, says cap hpi with condition being key. The most desirable and well-maintained would have exceeded these averages, said the report.
Diesel values increase in January used car market
At the three-year mark, Diesel emerged as the strongest performer in January 2025, with a 0.2% increase, or around £40, while Hybrids remained flat overall. Petrol saw a marginal decline of 0.1%, or approximately £60, and Plugin Hybrids dropped by 0.6%, or around £175. Electric vehicles experienced the biggest decline this month, falling by 1.1%, or roughly £240.
Jeremy concluded: “EVs at the three-year benchmark have experienced a little more pressure throughout January following several months of stability. However, this trend is likely to rebound throughout February due to being the fastest-selling fuel type for many retailers.
“January ended broadly in line with our short-term forecast position and overall expectation. It has been a good solid month for most retailers, auctions and wholesale vendors, but with some adverse weather perhaps affecting a more positive outcome. February will likely continue on a positive trajectory, with demand increasing as stock becomes thinner on the ground the closer we get to March.”