- October 5, 2018
- Posted by: Celine Evans
- Category: Automotive Industry, News
Manufacturers have been introducing their versions of advanced electric vehicles to the market for some time now, providing car buyers with plenty of choice when the time comes to make the switch from traditional fuel-type vehicles.
Dealers have speculated what this means for their businesses, how much of an impact this will have, and just when EVs will become a popular trend. Cap HPI found a pattern in their research.
Recent Effects of High EV Demand
According to experts at Cap HPI, pre-owned EVs saw an increase in value during last September, even despite unchanging performance throughout other areas of the sector. This month alone, AFV values have risen by 0.9 per cent, showing strength amongst fully electric vehicles such as Tesla’s Model X and S models.
Cap HPI’s results show that, while one-year-old city cars have increased in value by 0.4 per cent, older and higher mileage vehicle have indeed lost value, with decreased demand.
SUVs could see an increase in value in the run up to winter this year, and, with a healthy demand and the flow of market stock being not as heavy in September, overall values have remained balanced or somewhat increased.
Though models such as Ford’s EcoSport are known for being desirable on the used car market since first introduced, values boosted even further during September this year.
‘’There was an interesting dynamic regarding supply into the used car market. On the one hand, late-plate volumes were higher than normal due to the August pre-registration activity – although this was not prevalent amongst all manufacturers’’, Cap HPI’s Head of Current Evaluations, Derren Martin, commented.
‘’Almost to counter this volume, with new car registrations in September being lower than in previous years, the volume of fleet returns and consumer’s part-exchanges has been far lower than previously.
‘’Volumes of pre-registered cars do not tend to be remarketed through the auction halls, so numbers there have generally been lower.’’
What the Cap HPI Experts Said
After gathering results from their research, experts at Cap HPI have predicted a strong and stable used car market throughout the upcoming weeks. However, supply and demand dynamics should be observed at a micro level, ensuring both trade and retail data are also closely monitored during each month.
Derren Martin commented on the general trends in the second-hand sector. He said that: ‘’With retail demand unlikely to dissipate anytime soon and supply lower than normal, there is the potential for prices not to drop by as much as they have done at this point in previous years.’’
Martin further added, ‘’The average drop during October over the last four-years was 1.7%, with it being as high as 2.2% in 2015. Last year it was just –1.2% and this year there is the possibility it will not even drop by that amount.’’
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