March 2024 sees used market stability reports cap hpi

AFTER months of turmoil, a period of calm and stability seems to have returned to the used car market.

According to the RV experts at cap hpi, March 2024 saw an average value movement at three years/60,000 miles of just -0.1% (a downwards movement of £70).

cap hpi said it marked the third strongest March into April monthly movement since 2019.

One-year-old vehicles also decreased by a minimal 0.1%, with the five-year and 10-year age points also decreasing in value by 0.7% and 1.8%, respectively.

However, older and higher mileage or damaged stock are being penalised.

Commenting on the market, Jeremy Yea, Senior Valuations Editor at cap hpi (pictured above), said:

“Cars in good condition with low mileage and holding good provenance are still the most sought after within the market and across all mainstream vehicle sectors.

“These are viewed as fast-churning good retail stock, where competition remains strong despite the increase in wholesale supply levels throughout this new registration plate month.

“This injection of increased used supply into the market has certainly not dampened the desire to buy, and current supply and demand levels are still well matched.

“Used car sales have remained healthy within an overall upbeat and stable retail marketplace. The consensus is that consumer enquiries remain at good levels. This return to what can only be described as ‘normal seasonality’ has been a much-needed period of stability welcomed by retailers during this important first quarter of the year.”

City Car was the strongest performing mainstream sector increasing by 1.1% or c£80 at three years.

MPVs dropped marginally by 0.1% or c£40, and SUVs remained level. Supermini fell by 0.2% or c£20; Lower Medium is down 0.3% or c£40, and Upper Medium is down 0.4% or c.£60.

There is a continuing theme of very small drops across most sectors, continued cap hpi, but nothing untoward or out of line compared to pre-COVID historic March into April monthly movements.

Fuel type value movements

cap hpi said that Hybrid and Petrol had increased by 0.5% and 0.2% respectively. In contrast, Diesel went down by 0.3%; Plug-in Hybrid went down 0.7%; and BEVs declined by a further 2.3% (equivalent to £525).

Notable BEV ranges that have seen values reduce at three years in March 2024 said cap hpi were the Citroen C4 (-6%/£600), Hyundai Ioniq (-4.9%/£500), Nissan Leaf (-5.9%/£600) and VW I.D.3 (-6.1%/£880).

Two vehicles that saw values increase at the same age point were the BMW iX (2%/£600) and the Mercedes EQA (1%/£200). Of all the BEVs valued at three years, 75% saw values reduce, 20% remained level, and just 5% saw values increase.

Yea concluded:

“The availability of electric vehicles in the used wholesale market continues to expand, offering buyers a greater selection than ever before. In terms of sold data, we have already received nearly 40% of last year’s total sold volume in the first three months of the year.

“However, BEVs still only make up around 4% of all the sold data we have received this year, across all vehicles of all ages and mileages.

“As the electric vehicle market continues to mature, there could be some further adjustments to come as a number of manufacturers compete on price and try to hit ZEV mandate targets.

“A continuation of strong new car offers and registration activity is likely to remain and, therefore, may further impact values. As ever, the market presents a complex picture.”