Cap HPI has reported a 1.1% decline in the price of the average used car during December points towards a “stabilising” of the market.
The used car data experts’ analysis showed values for vehicles at three years 60,000 miles moved back by 1.1% last month compared to a fall of 1.6% in December 2016.
Average values at one year 10,000 miles fell slightly more and moved back by 1.2% due to greater volumes entering both the retail and wholesale market, according to Cap HPIPIHPI.
James Dower, senior editor of Black Book at Cap HPI said: “Historically, used car activity starts to improve after the Christmas period and values begin to strengthen.
“Buyers will be looking to replenish sold stock and those who have run a more lean stock into the back end of the year will also be looking to capitalise on the upturn in retail enquiry rates.
“Wholesale stock levels tend to be relatively healthy at this point in the year, but it is likely that the higher graded vehicles will generate the greatest level of attention from the buyers and will look to command higher values in the increasingly competitive marketplace.
“Used cars are, most certainly, going to be of utmost importance to profitability through the coming year. The used car market is likely to increase in volume due to the historic levels of new car registrations but, with the decline in new car volume, this should have a stabilising effect.”
Cap HPI reported that the city car sector had generated high demand during December with values falling by 0.1% at three years and 60,000 miles, with the Fiat 500 (08-15), which rose by 2.1%, Toyota Aygo (14- ) up 2% and Smart Fortwo (14- ) up 1.8% among the top performers.
The EV sector saw average prices rise at three years 60,000 miles by 0.9%.
Key influences within the overall average movement were Renault Zoe (13- ) Electric, which continues to see strong demand and moved up by 9.9%, Smart ForTwo (13-15) Electric increased by 5.2% and Peugeot Ion (11- ) which increased by 4.2%.