Used car market rebounds in September with EV values leading the charge reports cap hpi

THE used car market defied expectations in September, showing robust performance across the board and a notable resurgence in the electric vehicle (EV) sector. According to the latest data from cap hpi, average used car values at the three-year, 60,000-mile benchmark increased by 0.2%, contradicting the typical seasonal trend of a 0.2% decline. This positive movement underscores the continuing stability of the used car market throughout 2024, particularly during the summer months.

EVs break the cycle of decline

In a significant turn of events, EVs emerged as the top-performing fuel type in September. After 24 months of consecutive decline, which saw values plummet by approximately 60%, EVs finally registered a positive average movement of 1% at the three-year mark. This upswing is supported by data showing nearly half of the BEV models valued at this age point experienced an increase in value this month, compared to just 11% in August.

“While it might be premature to declare a complete turnaround in the fortunes of used EVs, it's certainly encouraging to see values moving in the right direction.”

Chris Plumb, Senior Valuations Editor at cap hpi Tweet

Plumb highlights the “excellent value-for-money” that used EVs currently offer, particularly models priced under £18,000. Standout performers in the EV sector include the BMW i3 (up 5%), Peugeot 208 (up 4.5%), Kia e-Niro (up 4%), and Nissan Leaf (up 4%).

Market stability and sector performance

The overall stability of the used car market in 2024 is attributed to a confluence of factors. “The price corrections in late 2023 helped to moderate the inflationary pressures of 2021,” explains Plumb. “While prices haven’t fully retreated to pre-2021 levels, they seem to have reached an equilibrium that works for both retailers and consumers.”

Across different vehicle segments, SUVs demonstrated the strongest performance in September, with an average increase of 0.6% at three years old. Medium-sized SUVs led the pack with a 0.8% rise, followed by small SUVs (0.6%) and large SUVs (0.1%). Notable gainers include the Renault Captur (up 2%), SEAT Arona (up 1%), MINI Countryman (up 2%), and Mazda CX-5 (up 2%).

Interestingly, Land Rover models also experienced a resurgence in September, with values increasing by an average of 1.3% (£290) at the three-year, 60,000-mile point. This marks a positive shift for the brand after a challenging period that saw values decline by approximately 17% (£6,600) over the past year.

Looking ahead

While September’s figures paint an optimistic picture for the used car market, cap hpi emphasises the importance of recognising nuances within specific models and fuel types. Nevertheless, the overall trend suggests a continued period of stability, with EVs potentially poised for a more prominent role in the used car landscape.