Used car values have slipped a further 1.5% on average since Cap HPI reported a 4.2% fall in October, the largest drop in a single month for more than a decade.
The average value of a used car at three years, 60,000 miles, fell by £850, in October.
In the last 10 years, Cap HPI has only witnessed monthly drops in Live values of more than 3% on three occasions – November 2014, May 2019 and November 2020.
Following the 1.5% decline in used car values seen so far this month, Derren Martin, director of valuations at Cap HPI, said: “The market is moving quickly, and the valuations team at Cap HPI is making thousands of adjustments to vehicle values on a daily basis.
“Vendors and buyers must keep up to date on market movements through this transitional period.”
Martin described it is a “market realignment”, with values dropping by a cumulative 13.6% in seven months since April.
“It looks like November will see another reasonably large drop,” he added. “However, values could also start to stabilise, particularly if dealers and car supermarkets start to stock up, with an eye on January.
“Keeping close to Live values is absolutely imperative in the current climate, with monthly values already out of date for many models.”
Cap HPI provides data and software solutions spanning vehicle valuation, validation, collision, mechanical repair, and total cost of ownership.
*Article Source www.caphpi.co.uk