A study of the used car market by cap hpi shows values are becoming more volatile. Since the start of 2019, the number of value movements made by the team of editors at the data company has risen 41%.
March and August were the most volatile months and January the most stable. The automotive data experts have reported a market realignment through the first half of the year with values heading downward following an unusually strong year in 2018. The declines slowed in August as the market stabilised with a fall of 1.0%, the smallest fall since March.
Values are set by cap hpi using an unrivalled breadth of data sources, big data technology and a team of editors who scrutinise trends and movements in the market. The team of 14 experts is supported by data analysis and audit managers, who ensure the quality of the data.
Commenting on the trend Derren Martin, head of UK valuations at cap hpi said: “The data shows the used car market is becoming more complex and volatile. Used vehicles reach the wholesale market through a multitude of routes that all impact on values. We also see the pace of the market accelerating as vehicles from the fleet and retail sectors are remarketed faster than ever. We believe that the most accurate data is achieved by combining technology and an experienced eye, especially as the whole system becomes more volatile.”
In 2019 the data company has seen a drop in used values greater than the same month in the previous three-years. It argues its Live values data points to a more stable period ahead as demand and values are more closely aligned.
Average diesel car values are consistently dropping by more than their petrol counterparts, with August seeing a 1.1% fall compared to 0.8%.
Martin said: “With the increasing number of models, powertrains, options, and acceleration in generations, it’s clear that the used market will only become more complex as time progresses. And while we don’t expect any major shifts in the overall market, we are seeing an increasing disparity and volatility between makes, models and powertrains as consumer tastes shift. We are strongly advising customers to use the real-time data available in our Live product.”