The latest data from Cap HPI makes good reading for the used car market. With a drop of 0.9% in April and then 1% in May, some were anticipating a bad month for June too. However, the figures show the overall drop was a tiny 0.1%. At some points there was even a belief we could see a slight increase. If you are a car broker, the outlook is far more positive.
Good demand
A great thing here is demand has been healthy with an air of positivity. There has been particularly strong interest in ex-fleet and leasing cars arriving on the market. There was just a 0.1% drop in the value of three year old used cars in June. It was 0.2% for one year old vehicles.
The biggest drop was actually for 10 year old vehicles. Their values fell by 2%. Generally that is because more people are looking for newer models that are less likely to need any kind of costly repairs or maintenance. However, a 2% drop translates to around £75 so it isn’t huge.
Demand and values of petrol cars were the strongest in June. Values actually rose by 0.2%. Diesel cars had a 0.2% dip. Hybrids were worse off, dipping 0.5%. However, it was still EVs pulling the market down, losing 1.7%.
Positives
As we said, there are plenty of positives about the current situation, whether you are a dealer or a car broker. It is also dispelling a number of myths. People typically expect a fall in demand and prices because of things like elections and sporting events such as the Euros or Olympics. After-all, the expectation is that people will be looking elsewhere instead of thinking about cars. But, Cap HPI said they don’t really have an impact. Bank Holidays and school holidays can bring a slowdown, but generally not to such an extent to massively reduce prices.
The outlook for July and later in the year is quite positive. We could see another month like June with a slight dip in values. Or, we could easily see a rise in prices.
More crucially, the expectation is we will have a better end to the year. There was a 10% dip in values in winter 2023. However, it is not likely to happen this time around. The only concern is that stock is still too low.
Want to become a car broker?
Auto Car Brokers keeps a close eye on the second hand car market. It is important that anyone involved in broking does the same. This way you can get an idea of how much activity there is. Plus, you can see which models are increasing in value. You may end up spending more time working to find them to cater for higher demands.
If you think you could be a car broker, you should browse our website to find more. There is useful information about broking and how it works. In addition, we have exceptional products to help broking businesses. You can even contact us if you need some help.
