DESPITE concerns surrounding the Autumn Budget and potential disruption to vehicle finance availability, the used car market has bucked seasonal trends, demonstrating robust performance in November.
This is according to the latest data from cap hpi, which reveals that the value of a typical three-year-old car with 60,000 miles on the clock fell by just 1.6% (£280) last month. This compares favourably to the average November decline of 2.1% recorded since 2012.
"November has proven to be an intriguing month for the used car retail sector. Several potential headwinds loomed, threatening to disrupt business activity. The combination of half-term holidays, the Autumn Budget announcement and a pivotal court ruling on undisclosed commission payments created a challenging and uncertain backdrop for the market."
Despite initial concerns, the impact of the Autumn Budget appears to have been minimal. Plumb notes that the market has consistently outperformed seasonal norms throughout 2024, highlighting its resilience.
Key findings from the cap hpi data
- One-year-old cars: Values down 1.3% (£400)
- Five-year-old cars: Values down 1.6% (£200)
- Ten-year-old cars: Values down 1.6% (£70)
- Weakest sectors: Convertibles (-3.5%, £740) and coupe cabriolets (-4%, £640)
- Strongest sector: Large Executive (-0.3%, £130), with the BMW 7 Series (petrol and hybrid) seeing a 2% increase in value.
- SUVs: Representing a third of all vehicle sales data (60% for models up to three years old), SUVs saw an average value decline of 1.7% (£300).
- Fuel types: Petrol and diesel saw the largest declines (-1.7%, £300), while hybrid electric vehicles performed best (-0.7%, £100). Electric vehicles (EVs) saw a decrease of 0.9% (£180).
EV boom continues
The used EV market continues its upward trajectory, with year-to-date sales figures up by a staggering 175% compared to 2023. “October set a new record for the highest volume of used EVs sold in a single month,” says Plumb. For vehicles up to three years old, EVs now account for 14% of sales, second only to petrol (60%).
Market outlook
“In summary, November’s movements reflect a continued return to typical seasonal declines despite the presence of various factors that could have negatively impacted the market,” concludes Plumb. “The used car sector has demonstrated remarkable resilience as 2024 approaches its conclusion.”
Catch up with last month’s used car values
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Automotive and fleet writer for Broker News
