Changes in Used Car Prices: What You Should Know
Are you considering purchasing a used car? It’s essential to stay updated with the current market trends, especially when it comes to pricing. Recent reports suggest that the value of used cars in the UK vehicle market is experiencing a notable shift, and understanding these changes can help you make informed decisions.
According to a recent article, Cap HPI, a leading provider of automotive data and valuations, has reported a significant drop in the average used car value in August. The decline, estimated to be close to 2%, could mark the largest monthly drop this year. This trend follows a similar decline in July, where values fell by 1.9%.
But before you worry about a major crash, experts suggest that what is happening is more of a “realignment” in the market.
Related Reading: Weighing Up The Pros And Cons Of Leasing A Car
Derren Martin, the director of valuations at Cap HPI, explains that while prices are indeed dropping, they’re still relatively high compared to a few years ago. This realignment is likely due to an increase in the volume of cars being put up for sale, putting pressure on prices. However, it’s important to note that this is not necessarily a negative development; instead, it’s part of the natural ebb and flow of the market.
Interestingly, the current decline in values is also affecting the electric vehicle (EV) segment. The values of used electric cars are dropping faster, with a decrease of 1.5% reported in mid-August. This shift is more significant when it comes to certain models within the EV category. While some EVs have bucked the trend by increasing in value, the general decline in this segment indicates a search for equilibrium.
The decline in EV values might be good news for those considering hybrids. While you might expect hybrids to struggle against the backdrop of EV price drops, some premium hybrids are holding up better than anticipated. However, experts caution that these values could come under pressure as well, especially when compared to their electric counterparts.
What does all of this mean for the average used car buyer? Well, it suggests that there’s an opportunity to explore the market more thoroughly.
Despite these fluctuations, the used car market is still steady. This situation offers a chance for buyers to make well-considered choices without succumbing to panic over pricing. Experts also point out that the upcoming month of September could bring positive changes. With more cars entering the market from fleet and leasing, dealers are likely to have a better selection of vehicles to offer.
So, stay informed, and you’ll be best placed to make the right choice when you’re ready to get your new (or new-to-you) car. And, don’t be afraid of these changes – they might just help you find the perfect car for you.
Related Reading: Navigating The Upcoming UK Registration Plate Release
What are your options for extended UK car warranty cover?
We don’t want to complicate this, so we’ve kept it nice and simple. Here’s three great options for mechanical breakdown or electrical failure car warranty cover, that’ll give you all you need, including cover for wear & tear.
Select this option if you want affordable cover for a long list of covered components. Gives you up to £7,000 claim limit towards the cost of parts, labour and VAT for the mechanical breakdown or electrical failure of covered parts.
Select this option to cover a wide range of components on your vehicle, and get up to £7,000 claim limit towards the cost of parts, labour and VAT in the event of mechanical breakdown or electrical failure, or imminent failure identified during an MOT or service.
Looking for comprehensive warranty protection? Our 5-Star warranty covers an extensive range of parts and offers up to £7,000 claim limit towards the cost of parts, labour and VAT for the mechanical breakdown or electrical failure of covered parts on your vehicle.