Common used automotive costs have dropped by 0.6% to date this month and a complete drop of 1.2% is anticipated for Might, in keeping with Cap HPI.

Derren Martin, Cap HPI director of valuations gave AM an unique mid-month replace, the place he defined a few of the key tendencies which might be rolling in from the corporate’s commerce knowledge.

The ten 12 months outdated market has recorded barely larger downward stress to date this month with a 0.9% drop in comparison with the entire common decline.

Martin described the present state of affairs with values as a “plateauing impact”.

He stated: “When you’re forecasting ahead you’re a 1.2% drop for Might. 

“When you look again at historical past, the month of Might normally reveals a 1.7% drop over the past 10 years.

“Although it’s a drop in values for Might in 2023, it’s nonetheless on the stronger aspect. We’re hardly consuming into the rise in used automotive costs that have been recorded final 12 months. Values are nonetheless actually excessive in comparison with the place they have been two years in the past.

“There’s nothing untoward or used automotive worth crash on the horizon as a result of there merely isn’t the amount of autos on the market for that to occur.”

EVs values proceed to drop greater than ICE

Electrical automobile (EV) values are nonetheless dropping in Might, with a fall of two.3% to date this month in contrast with petrol and diesel.

Martin stated the image on EV values continues to be fairly combined and highlighted some standout autos which have dropped greater than the typical.

This consists of the Peugeot e-208 which has dropped by 7%, the e-2008 which is down by 6%, the Vauxhall Corsa Electrical, which is down by 5% and the Mustang Mach-E, which is down by 4%.

Regardless of the latest worth reductions for Tesla, the Mannequin 3 costs are steady to date in Might, solely dropping by 1%.

Martin stated: “A few of these examples are a part of realigning as a result of they’re cheaper than the Mannequin 3, however as a result of the pricing on Teslas has dropped rather a lot in latest months, the pricing is nearer than it ever was.

“As soon as you’re taking month-to-month pricing into consideration possibly you will get a Mannequin 3 as an alternative of a Corsa and it doubtlessly opens up extra EV clients to extra aspirational autos for his or her funds.”

UK used automotive market in good well being

Martin stated that whereas latest SMMT experiences of continued development out there reveals it’s in good well being, there may be nonetheless a problem with provide.

He stated: “Although new automotive provide has improved on final 12 months, it’s nonetheless decrease than 2019.

“There’s nonetheless not sufficient vehicles out there to oversupply the used automotive market. Provide is bettering and demand is OK. That’s why now we have this parity state of affairs.

“Volumes aren’t anyplace close to the place they have been pre-Covid.

“Final 12 months used volumes have been in all probability 20% down in contrast with pre-Covid and now they’re extra like 10% down.”

Martin stated sellers at the moment are dipping their toes again into the used EV market, however there are examples of equal EVs which might be “fairly a bit cheaper” than their petrol or diesel counterparts.

He stated: “The reluctance to inventory EVs isn’t essentially to do with costs, but it surely’s extra to do with shopper demand for used EVs after which the scare tales over the previous few months on charging factors, the price of charging and the price of residing disaster.

“There’s been a bit little bit of reluctance to purchase and we’re nonetheless seeing warning from sellers, but it surely’s a fantasy that they’re not stocking EVs in any respect.

“There was an enormous uptick in EV registrations three years in the past and these autos at the moment are coming again into the market. The volumes are solely going to extend.”