December 22, 2024
Automotive

UK Used Car Market Stays Strong Despite Economic Uncertainty and Seasonal Trends

UK Used Car Market Stays Strong Despite Economic Uncertainty and Seasonal Trends

The UK used car market defied expectations in November, continuing its trend of outperforming seasonal norms despite economic uncertainties and challenges in vehicle finance availability. According to valuation experts at cap hpi, the average values for three-year-old cars with 60,000 miles saw a 1.6% drop (around £280), which was less than the historical average decline of 2.1% for the month since the introduction of Cap Live in 2012. This continued resilience in 2024 marked a consistent pattern where each month has exceeded historical trends.

Chris Plumb, head of current car valuation at cap hpi, highlighted that November was a particularly complex month for the market, with factors such as the Autumn Budget and other external issues contributing to market uncertainty. However, the immediate effects of the Autumn Budget, which was announced on October 30, appeared to be minimal.

In terms of vehicle value trends, all age categories saw declines in November, with one-year-old vehicles falling by 1.3% (£400), three-year-old cars down 1.6% (£280), and ten-year-old vehicles seeing a decline of 1.6% (£70). Among specific segments, convertibles and coupe cabriolets experienced the sharpest declines, while the Large Executive category, particularly the BMW 7 Series, showed a positive performance with values increasing.

SUVs continued to dominate the used car market, accounting for a significant portion of sales. Small and Medium SUVs saw a decline in value, while Large SUVs showed a smaller drop. In terms of fuel types, Petrol and diesel vehicles experienced the largest declines, while Hybrid Electric Vehicles (HEVs) performed better with a smaller reduction in value. Battery Electric Vehicles (BEVs), though still showing strong growth in sales, experienced a moderate decline in November compared to recent months.

Despite these challenges, the used car market in the UK has remained robust in 2024, showing strong underlying dynamics heading into the year’s end.

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