Strongest June for RVs since 2009

RVs in June were the strongest since June 2009, reports cap hpi.

Average used car values fall by just 0.1% or £25 at three years and 60,000 miles, whereas the average would be a a decline of 1.2% (excluding the Covid-affected years).

Commenting on the market, Derren Martin, Director of Valuations of cap hpi, said:

“The air of positivity for used car retail that has been present all year has, if anything, increased in June. With interest rates stabilising, inflation falling, and many consumers accepting cost-of-living concerns as the new normal, the appetite to purchase has been omnipresent."

Derren continued: “That is not to say that demand has been through the roof, as it was for prolonged periods in 2020 and 2021 when it was pent-up, but it has been consistently ‘okay to good’ for most retailers. As we predicted, there has been little-to-no impact from distractions such as Euro24 football or the build-up to the General Election on 04 July.

“Petrol cars remain the most desired by consumers, although hybrids and plug-in hybrids continue to be popular for consumers not quite ready to take the plunge and buy a BEV.”

Convertibles and coupe cabriolets both increased by just under 1% as summer sunshine appeared, cap hpi noted, although these will become rarer as OEMs concentrate on making more SUVs. Some higher-value cars, such as the Mercedes AMG C-Class Cabriolet, increased in value by 5% or c£1,500, helped by low volume.

Average petrol values went up at both the one- and three-year age points, with diesel cars and both types of hybrids dropping negligibly.

However, BEVs dropped by 1.7% on average, equivalent to £350. Derren noted that while BEVs remain the worst-performing fuel type for value retention, he said it was encouraging to note that June’s Live movement down was significantly less compared with the previous three months. July ties with March as the joint best-performing month for BEVs, with values decreasing by the same percentage.

Analysing all the BEVs valued at this age profile, 68% experienced a decrease in value, 25% remained stable, and 7% saw an increase in value, said cap hpi. This was an improvement from the previous month, where 89% of BEVs saw a decrease in value, and only 1% saw an increase.

Derren concluded: “As things stand at the time of writing, there is no reason to predict an end to the strong months experienced so far in 2024. Volumes remain on the low side, particularly those under four years old, and demand from consumers is steady. History shows that General Elections cause little disruption, similar to large sporting events.”