Values of used cars have continued to strengthen in February, according to Cap HPI’s Black Book Live.
Prices rose by 0.5% in the first 10 days of the month, at the three-year and 60,000 miles point. This compares to a 0.4% rise at the same time last year.
“The market continues to strengthen and there is no immediate end in sight. Auction conversion rates are high, and those businesses that remarket direct to retailers are reporting they are ‘making hay while the going is good,” said Derren Martin, head of current valuations at Cap HPI.
“Lower than expected new car registrations in January boosted the strength of the used market, and there are fewer fleet returns and part exchanges hitting the used car market,” he added.
According to Martin dealers are also particularly focussing on selling used cars due to uncertainty over new car volumes this year.
The automotive data company reports diesel and petrol variants are both performing well. However, petrol values have risen overall by more than their diesel counterparts.
Top performers include most of the Mini range, particularly both diesel and petrol variants of the previous model Countryman, where values have risen by 4% so far this month. The Chevrolet Spark is also up 4%, Renault Megane up 8%, older Audi Q5 petrol and diesels up 2% and the Renault Twingo up more than 5%.
The strength in used demand and prices is likely to continue through February and into March.