Massive drop in UK used-car values
The average value of a used car (3 years old, with 60,000 miles) in the UK (pictured: Spaghetti Junction, Birmingham) fell by 3.1% last month, compared to May 2018, Cap HPI reports. It's the biggest drop in May since the company's records began in 2012 and the biggest monthly drop since December 2014.
Following a 2.3% drop in April, these latest figures represent “a significant realignment in used-car values (in the UK),” Cap HPI suggests.
According to the company, the drop in used-car values over the past two months is the result of a 'perfect storm' of circumstances: high new-car prices in 2017 and 2018, heavy supply and weakening demand.
Values dropped across the board, affecting most popular segments (SUVs, MPVs, city cars, superminis), and most motorisations (diesels more than petrol cars, and also EVs) – and even convertibles, usually in high demand at this time of year.
The Citroën C-Zero went counter the trend and saw its used value rise. Cap HPI thinks it unlikely the price decline will continue.