Cap HPI to keep value movements going in lockdown
Cap HPI has said it will continue to move values during England’s second lockdown to reflect accurate vehicle values and to support more active automotive trading this time round.
The data specialist stopped adjusting values during the first lockdown in April and part of May – due to scarcity of sold data and a “responsible approach to not affect automotive businesses’ bottom line”.
But it will continue to update values this time, due to the fact that many of the nation’s retail and wholesale businesses have signalled their intent to remain open and selling during this time. This comes on the back of the car sector’s work since the last lockdown to establish and develop new or pre-existing online sales models to continue trading in the event of further restrictions.
Cap said this was in turn providing it with the robust data sources required to reflect accurate vehicle values that can be updated in its systems on a daily basis.
Derren Martin, head of UK valuations at Cap HPI, said: “We have understandably received a lot of queries about whether we will be moving values during the lockdown that has begun this week. Our decision to continue doing so reflects the activity we continue to see across the market.”
Recent analysis by Cap HPI showed that used values had dipped by an average of 2.1% in October, in the first fall since March. It added that while the economic uncertainty has brought this decline into sharper focus, other market trends have also been at play, such as seasonable downturns. Used car values are also higher than they were a year ago; a situation that is “rarely sustainable”.
Martin added: “Despite the recent dip in used values we often see this time of year, cars and vans are still selling both in trade and retail even during a period of heightened economic uncertainty. Retail and wholesale businesses are also better established to sell online this time around and we don’t anticipate volumes to reduce significantly.”
He finished: “We want to assure customers that we will continue to move used values responsibly, based on trade sales data and retail advert evidence. In the unlikely event that sold volumes decline significantly, we can review this decision at any time and take swift action to ensure vehicles are priced accurately and easily during this time. Let’s keep the industry open, in a safe environment.”