- August 31, 2018
- Posted by: Celine Evans
- Category: Automotive Industry, News
The first three quarters of the year has had a positive effect on the used car market and according to Cap Hpi, the used market is set to retain this pattern as we face the fourth and final quarter of 2018.
Regardless of the impact of the Worldwide Harmonised Light Vehicle Test Procedure (WLTP) Cap Hpi is predicting a ‘relatively strong’ Q4 for used car values.
Head of Current Valuations of Cap Hpi, Derren Martin said that several automakers were likely to register lower volumes than normal in September, adding that this could stretch into the remaining quarter of the year and the new year, resulting in a positive impact on values.
“With fewer part-exchanges entering the market from this reduction, as some fleets extend their contracts by a few months, this could be good news for used car values beyond the immediate future.
“With demand unlikely to fall below where is seasonally is in the final four months of the year and even the potential for new car customers to be converted into late-plate used offerings.”
Though Martin acknowledged that an accurate forecast was difficult because of the uncertain impact the WLTP will have on the market, he said: “However, it is our view that the final months of the year will be relatively strong for used car values.”
Effects of the First Three Quarters of 2018
Cap said that the used car market remained solid through August and overall values dropped by a mere 0.3% for diesel and petrol cars of three years with 60,000 miles on record.
Sales of diesel cars on the used car market had risen during the first three quarters of the year, while on the new market they had significantly dropped.
However, Cap confirmed that diesel vehicles had retained their appeal with trade buyers as larger vehicles performed well during the first half of the year.
City cars did not perform as well as the average vehicle during August this year. Many of them had been strong throughout the year, but prices are now starting to weaken.
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