The used automobile market continued on its constructive trajectory on the finish of January and into early February, in keeping with specialists at cap hpi.

By the shut of the primary full week of January, common values had improved by 0.3%, and the market is heading for its first enhance in a month since March of final 12 months.

Commenting on the information, Derren Martin, director of valuations at cap hpi, mentioned: “The market feels comparable so far in 2023, when Cap Reside values elevated by 1% throughout February and 0.5% in March.

“Retailers are reporting wholesome demand from customers, with out breaking any data, and have the requirement to switch offered inventory and to speculatively buy once more, one thing that was not such a clear-cut resolution within the closing quarter of 2023, when values dropped by over 10%.”

Whereas commerce values are on the rise on common, there are a selection of nuances throughout the market. Electrical car values proceed to be risky, exhibiting a median discount in February of 0.9% to this point.

Most EV fashions proceed to drop barely or stay degree, and there’s little energy to report as provide continues to outweigh demand. Petrol automobiles, however, are the strongest performing gas sort, with a rise of 0.7% month-to-date, remaining the go-to automobiles for customers and retailers alike.

Value-point automobiles stay the strongest space, with metropolis automobiles, superminis and decrease medium (C-Sector) fashions growing in worth on common. The sub-£20k market stays probably the most sturdy, posing much less threat for retailers to inventory these forms of automobiles confidently.

Martin concluded: “General, the market stays wholesome, however a eager eye on the element stays very important. Retail costs are comparatively risky, as sellers jostle to make a wholesome margin and stay aggressive, with massive variations in commerce costs being paid between October and February making the market tough to guage from a retail perspective.”