Used car values at the three-year/60,000-mile point have gone up by 0.4% in February, according to Cap HPI.
The automotive data firm said this was driven by a resilient retail market that had continued to support the wholesale sector, leading to largely positive trading conditions.
It also reported strong conversion rates, with some vendors, particularly in fleet sales, said to be regularly achieving 100% conversions.
February’s value increase was just ahead of the seasonal average of 0.3%.
Cap HPI head of current car valuation Chris Plumb said: “With ongoing uncertainty in the new car market, particularly as private registrations remain subdued, some franchised retailers are placing greater emphasis on expanding their used car operations and strengthening their aftersales business to mitigate potential revenue pressures, which in turn increases competition for vehicles through wholesale channels. The result has been upward pressure on values in recent weeks, marginally above the seasonal norms.
“The value movements reinforce a continued market focus on price-sensitive stock—vehicles that offer an attractive upfront cost or lower monthly finance payments.”
Cap HPI said the biggest annual value increase was seen from cars being sold for less than £5,000, up by 1.8%.
In contrast, used EV prices have fallen across all age and mileage profiles, including by 1.6% at three-years/60,000-miles.
Plumb said: “With the arrival of the new ‘25’ plate from 1 March, we anticipate increased volumes within the used car market as fleet returns and part-exchanges filter through.
“At the same time, manufacturers are offering competitive new car deals —particularly on EVs— as they push for market share and work towards their VETS targets.
“However, any impact on used values is unlikely to be felt until April at the earliest, and even then, any downward pressure is expected to be moderate.”
