Cap hpi sees values of convertibles soar 12%-plus in March

The used car market is seeing the values of convertibles rise fast, upwards of 12% in March alone.

That’s the view of valuation guide cap hpi which said the rises are being seen with cars where there is volume, such as the Mercedes E-Class and the BMW 2-Series but the  biggest hikes were for older cars.

“Prices of convertibles are rising, almost across the board, at levels rarely witnessed before.

“Older cars, where there is lower volume, have been the strongest. Even where there is volume, such as the Mercedes E-Class and the BMW 2-Series. Increases of upwards of 12% (£1,750 and £1,500 respectively) are rises generally not experienced in a single month.

“This is even more remarkable considering many convertibles went up in value last year and have not dropped by the usual amounts over the winter.”

It predicts that April and May will witness wholesale prices increasing as dealers seek to satisfy this consumer demand, particularly with some uncertainty over supply levels in the new car market.

Head of valuations at cap hpi, Derren Martin said: “Initially as we entered March, values continued to drop in the same way they had over previous months.

“Over the last 2-3 weeks, however, the market has turned. Dealerships have been taking employees off furlough and they have been more actively stocking up to cope with increased consumer demand, both now and when car showrooms reopen in early-to-mid-April. More so than ever, though, the devil is in the detail as prices have varied for different sectors of the market.”

Alternatively fuelled vehicles have generally reduced in value once more. Electric vehicles dropped on average by 1.4%, equivalent to almost £400 at 3-years old, with plug-in and pure hybrids very similarly affected.

Martin expects the used car market to continue to be strong, “We are not expecting pent-up demand to be quite at the levels they were following Lockdown 1 last year, but there will still be plenty of buyers actively seeking out a used car.”

Keeping close to cap hpi Live valuations, to maximise profitability, based on sold data as evidence, is more important than ever in such unusual and potentially volatile times.