The used market in January recorded a significant improvement compared to December, Cap HPI has reported, with demand increasing as the month progressed.

Jeremy Yea, senior valuations editor at Cap HPI

Values at the three-year, 60,000-mile benchmark show a minimal decline of just 0.1%, which translates to an average decrease of £60 and is the joint fourth strongest movement on record for January going back to 2012 when Cap Live was introduced.

Jeremy Yea, senior valuations editor at Cap HPI, the market could have seen a slight positive if the monthly deadline had been a few days later and noted that Cap Live subscribers may see this in data over the coming days.

Yea added that the view that used car values go up in January is “a bit of a myth”.

“Since the introduction of Cap Live in 2012, the average monthly movement for this period is a negligible -0.2%. Only three years since 2012 have resulted in positive February monthly movements – 2012 (0.5%), 2020 (0.6%) and 2023 (0.1%) – with the weakest being a drop of 0.7% back in 2019.”

At the one-year mark, values saw a drop of 0.3%, equating to about £150. This decrease in values for younger cars is likely due to appealing new car offers and considerable discounts on pre-registered models.

The five- and 10-year age points registered increases of 0.4% (or £10) and 1.6% (around £60), respectively. But condition of these older cars is key. If the grading and mechanical assessments have been positive, it’s likely that the average movements have significantly exceeded the most desirable and well-maintained examples sold this month.

Across the different powertrain types, diesel emerged as the strongest performer this month, with a 0.2% increase, or around £40, at the three-year mark, while hybrids remained flat overall. Petrol saw a marginal decline of 0.1%, or approximately £60, and plug-in hybrids dropped by 0.6%, or around £175.

Battery electric vehicles (BEVs) experienced the biggest decline this month, falling by 1.1%, or roughly £240 after several months of stability.

But Yea said this trend is likely to rebound throughout February due to BEVs being the fastest-selling fuel type for many retailers.

He concluded: “January ended broadly in line with our short-term forecast position and overall expectation. It has been a good solid month for most retailers, auctions and wholesale vendors, but with some adverse weather perhaps affecting a more positive outcome. February will likely continue on a positive trajectory, with demand increasing as stock becomes thinner on the ground the closer we get to March.”

Used car sales down 23% in November and December

Marketcheck UK has released its own used car analysis, outlining a stark drop in sales within the used car market over November and December, compared to September and October.

Marketcheck UK said the fall in sales volumes at the end of 2024 suggests a market contraction, not usual seasonal fluctuations

The firm’s data shows sales in the last two months of the year fell 23% to 524,476 compared to 681,293 in September and October.

Over the same time period in 2023, sales fell 8% in the last two months of the year.

Alastair Campbell, Marketcheck UK, commented: “Factors contributing to this downturn may stem from the broader impact of the Autumn Budget – the implications of these changes have rippled through the economy, impacting consumer confidence and spending power.

“The decrease in sales volumes from 681,293 units in September and October to just 524,476 in November and December suggests a contraction in the market. Not the usual yearly fluctuations.

“The current trend could signal underlying economic challenges that go beyond the automotive industry, affecting consumer goods and services across the board. If this trend continues, we could see a recalibration of pricing strategies, inventory management, and a significant shift in consumer behaviour.”

SUVs crowned fastest-selling used cars of 2024

SUVs have taken the top spot as the UK’s fastest-selling car of 2024, marking the second consecutive year they have dominated the rankings, according to new research by AA Cars,

The C-HR was the fastest-selling used car in 2024

Seven of the top 10 quickest-selling used car models last year were SUVs, one more than in 2023, including the top four.

The Toyota C-HR emerged as the champion of the used car market, with this compact crossover getting snapped up faster than any other model on the AA Cars site in 2024.

In second place was the Mercedes GLA, another popular compact SUV.

The Kia Niro and Volvo XC40 SUVs took the third and fourth spots, respectively, while the Toyota Corolla rounded out the top five.

The fastest-selling vehicles of 2024 and 2023 on AA Cars

Separate analysis of AA Cars revealed the Ford Fiesta retained its spot as the most popular vehicle on the AA, extending its nine-year reign as Britain’s most searched-for vehicle.

Production of the Fiesta came to an end in 2023 after 47 years, but it remains a much-loved used car and features one place ahead of the Ford Focus.

New entries into this year’s top 10 of the most searched-for vehicles include the Audi A4, Mercedes E-Class and Mercedes C-Class.

The most searched-for vehicles of 2024 on AA Cars

James Hosking, director of AA Cars, said: “While SUVs are snapped up the quickest, only two appear on the list of the top 10 most-searched-for cars – the Land Rover Defender and the Volkswagen Tiguan.

“The Ford Fiesta continues to be the most searched-for vehicle and extends its reign to 10 years. The Ford Focus secured second place, underlining Ford’s continued strong market presence.

“Our research shows a growing consumer preference for SUVs and established brands in the used car market. Buyers are increasingly choosing pre-owned vehicles that offer reliability, versatility and value for money.”