Head of car valuations Alan Senior said that overall values have remained relatively stable for October as the peak buying season comes to an end, with high demand for clean, low-mileage examples. 

However he warned that values for hybrid models are becoming very fragile, adding: ‘The new car buyer is far more willing to embrace new technology as they have the assurance of solid manufacturer warranties. But used car buyers have become very wary about potential high repair costs and are unwilling to pay a premium over existing and trusted technology. Also the financial benefits of running a hybrid are minimal as real world fuel consumption is little better than a conventional petrol or diesel set up.’

Senior also commented on the ongoing fleet industry concern on future RVs as new car registrations continue to rise. 

He said: ‘We all know about the dire economic problems in Eurozone countries, with new car sales at their lowest for over 20 years. The financial crash of 2008 and the following recession saw the biggest downturn in the value of used cars here in the UK since the oil crisis of the early seventies. Then, in 2009, the used car markets woke up as buyers realised the car was an essential part of daily life and needed to be changed. Values rallied across the model ranges, especially for desirable off-roaders such as Range Rover Sport and Porsche Cayenne – models that had been almost unsellable in the immediate aftermath of the financial crash. 

‘The values of used cars then held stable for four years – longer than they have for decades – all because of supply and demand. Fewer new cars have been registered since 2008, driving this stability. The previous sales peak of around 2.5 million new cars in 2007 was considered too high and unsustainable for healthy residual values. However, this latest falling values warning from the fleet industry does not take into account the rapidly expanding population in the UK. 

‘Since 2007, while we have all been concerned about escalating fuel costs and steep rises in the cost of living, the population in this country has been growing dramatically, by around 4 million extra bodies. No one seems to have taken this large increase in potential buyers into account. It could easily absorb the rise in registrations this year.’ 

He added: ‘So, are we in for another four years of relatively stable used car values? I think we could be.’