Moving through the first half of the month we have seen an increase in used car activity both in the retail and wholesale markets. Prices remain reasonably stable although it does appear that, on average, they have slipped at a slightly steeper rate than we have experienced in Jaunary over the last 5 years. Data indicates that Auction volumes, although reduced from the previous month, are around 8% higher than at the same point last year and the online classified market has also lifted with an increase in volume of 9.3%.
Whilst the market still remains buoyant and consumer confidence remains strong, the extra volume of stock both on dealer forecourts and in the wholesale market are allowing buyers to be a little more selective over both what they buy and how much they are prepared to pay. Again, notably it is the best condition stock that performs well with dealers looking to ensure swift stock turn.
To put the movements into perspective, at the mid-month point, values at the 3 year 60,000 mile mark have moved down by 0.5% which is equivalent to the full monthly movement in 2016 where stock levels were slightly lower.
Whilst there is strength in the market and values on certain derivatives are holding, and in some cases going up, it does look as if we are set for a slightly weaker performance overall as we move into February.
James joined cap hpi in May 2016 and is responsible for the production of black book valuations, managing the team of 7 editors. With over 27 years’ experience within the motor industry he has worked within motor retail - from volume brands to high end prestige, motor finance and most recently as Sales and Marketing Manager for a vehicle remarketing company. James keeps a close eye on current market conditions and reports on valuation performance alongside key industry issues through his editorials and press releases.