Data from cap hpi has revealed that used car values fell by their largest amount since 2008 in September.
It found that values fell by 1.9%, an average of £420, at the three-year, 60,000-mile point. Meanwhile, values at the one-year age point dropped by 1.6%, or £575.
Values of older cars also fell during the month, with five-year-old car prices down 1.8% and 10-year-old car values decreasing by 2.1%.
However, used car prices remain at an unprecedented level despite these modest falls, tracking at some 25-30% more than in 2021.
Derren Martin, Director of Valuations at cap hpi, said, “It is important to put this month’s data into context. Used car values currently remain some 25-30% above where they were before those extraordinary increases in 2021. The downward movements now being experienced are a relatively gentle realignment, not a crash, and they are no longer increasing in severity – value drops have been consistent for the last three months now.”
A continued softening of prices is expected to continue for the rest of the year.
Martin concluded, “An average reduction similar to that of the last three months is widely expected.”
