Used Car Market in UK Peaks, According to cap hpi
Used auto sales in the UK are at a six-year high, according to cap hpi. Last year during this same period, average values decreased 0.7%. This year, however, the turn of the year has yielded a 1.2% increase in average value for used vehicles.
Derren Martin, head of current valuations at cap hpi, explained which used vehicle types are trending. “The sectors showing the main areas of pricing strength continued to be city cars, superminis and lower medium-sized cars, while convertibles are behaving as they normally do at this time of year, leading up to the spring and summer. The increase in demand for smaller vehicles is partly as a result of consumers downsizing but also a desire for petrol vehicles.”
Diesel engine models aren’t as high in demand, however these used vehicles have increased in value over the past few weeks. Volkswagen Passat, Hyundai i40s and the BMW 3-Series have proven popular for consumers who prefer a diesel-powered ride.
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As UK dealers are starting to worry about new models being too expensive for consumers, the demand for used vehicles that the first part of 2018 has shown should continue to play out in the coming months. As Martin expressed, “While there is still a variety of new car finance offers available, they are not quite as attractive as they once were.”
The growing availability of ride shares, car subscription services, and the emerging public transportation initiatives such as Hyperloop routes are two additional factors that might be swaying consumers toward the affordability of used vehicles. After all, if you tend to use public transportation and seldom drive your own car, why would you need (or want) to pay a hefty price for purchasing and maintaining a brand new vehicle?
Only time will tell if the UK used car market continues to thrive this year. But, according to this latest report, the odds definitely seem to be in favor of this sustained sales surge.
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News Source: Motor Trader