November’s used car market outperforms seasonal norms

The used car market outperformed the seasonal norms in November despite concerns about the budget and vehicle finance disruption, says cap hpi.

Movements have outperformed the seasonal average every month of 2024.

Chris Plumb, head of current car valuation at cap hpi, said: “November has proven to be an intriguing month for the used car retail sector, as several potential headwinds loomed, threatening to disrupt business activity.

“The combination of half-term holidays, the Autumn Budget announcement and a pivotal court ruling on undisclosed commission payments created a challenging and uncertain backdrop for the market.

“The Autumn Budget, delivered by the Chancellor of the Exchequer on 30th October, generated initial concern about its potential impact on consumers. However, the immediate fallout appeared limited.”

The value of an average three-year-old vehicle with 60,000 miles decreased by 1.6%, equating to around £280. Since 2012, the average movement into December has been -2.1%.

Values for one-year-old vehicles decreased by 1.3% (£400). Five-year-old vehicles saw a reduction of 1.6% (£200), and 10-year-old vehicles experienced a decline of 1.6% (£70).

Over half of the vehicles in this sector experienced no adjustment to values. The BMW 7 Series, in both petrol and hybrid variants, stood out with a 2% increase, adding between £600 and £680 to used values.

Petrol and diesel vehicles recorded the largest reductions at the three-year point (-1.7% or £300). PHEVs saw a decrease of 1.3% (£280), while HEVs performed best (average movement of -0.7% or £100

BEVs dropped to the second best-performing fuel type in November (average adjustment of -0.9% or £180.

Plumb said: “In summary, November’s movements reflect a continued return to typical seasonal declines despite the presence of various factors that could have negatively impacted the market.

“The used car sector has demonstrated remarkable resilience as 2024 approaches its conclusion.”