Common used automotive costs have dropped by 0.6% to this point this month and a complete drop of 1.2% is predicted for Might, in response to Cap HPI.

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

The ten 12 months previous market has recorded barely increased downward strain to this point this month with a 0.9% drop in comparison with the overall common decline.

Martin described the present scenario with values as a “plateauing impact”.

He mentioned: “For those who’re forecasting ahead you’re a 1.2% drop for Might. 

“For those who look again at historical past, the month of Might normally reveals a 1.7% drop during the last 10 years.

“Despite the fact that it’s a drop in values for Might in 2023, it’s nonetheless on the stronger facet. 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 automobiles 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 this point this month in contrast with petrol and diesel.

Martin mentioned the image on EV values continues to be fairly combined and highlighted some standout automobiles 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 value reductions for Tesla, the Mannequin 3 costs are secure to this point in Might, solely dropping by 1%.

Martin mentioned: “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 quite a bit in latest months, the pricing is nearer than it ever was.

“As soon as you are taking month-to-month pricing into consideration perhaps you will get a Mannequin 3 as a substitute of a Corsa and it doubtlessly opens up extra EV clients to extra aspirational automobiles for his or her finances.”

UK used automotive market in good well being

Martin mentioned that whereas latest SMMT experiences of continued progress available in the market reveals it’s in good well being, there’s nonetheless a problem with provide.

He mentioned: “Despite the fact that new automotive provide has improved on final 12 months, it’s nonetheless decrease than 2019.

“There’s nonetheless not sufficient vehicles available in the market to oversupply the used automotive market. Provide is bettering and demand is OK. That’s why we’ve this parity scenario.

“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 mentioned 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 mentioned: “The reluctance to inventory EVs isn’t essentially to do with costs, however it’s extra to do with shopper demand for used EVs after which the scare tales over the previous couple of months on charging factors, the price of charging and the price of dwelling disaster.

“There’s been somewhat little bit of reluctance to purchase and we’re nonetheless seeing warning from sellers, however it’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 automobiles at the moment are coming again into the market. The volumes are solely going to extend.”