The used car market performed ahead of seasonal expectations in May but with continued falls for battery electric vehicles (BEVs), new data from Cap HPI reveals.

Jeremy Yea, senior valuations editor at Cap HPI

Average values fell by 0.9%, or c.£210 at three years/60,000 miles, marking the strongest May into June movement since the introduction of Cap Live in 2012. Average movements, excluding Covid years, have seen a fall of 1.6%.

Jeremy Yea, senior valuations editor at Cap HPI, said the market was seeing strong demand for retail-friendly vehicles in good condition and in the most desired fuel types.

“However, buyers have become more discerning in their choices, prioritising desirable and fast-selling stock over potentially depreciating assets that could pose financial risks,” he stressed.

“The market continues to perform in line with seasonal expectations, or even slightly better for some and wholesale activity has remained largely stable throughout the month. Trade data supply volumes have remained consistent and healthy, with mid-month supply tracking around 6% above the same period in 2023, and 10% down compared to pre-Covid 2019.”

Values at the one-year age point fell by 0.8% or c.£325, while at five years old, values reduced by 1.3% or c.£160 and 2.4% or c.£100 at 10 years.

Convertibles and coupé cabriolets continued on a seasonal rise, increasing by 0.9% or c.£80 and 2.5% or c.£400, respectively, at the three-year age point.

Superminis however dropped by a negligible 0.1%, with lower medium (or C-sector) also only dropping by 0.8% or c.£100, meaning that these are the strongest mainstream sectors and highlight the demand for cheaper fast-churning stock.

Values for used battery electric vehicles almost mirrored the average performance from last month.

At the standard measurement of three years and 60,000 miles, values have decreased by 3.6% or £785 on average. Values have seen a continuous decline for 21 consecutive months, and in total, the cumulative decrease in BEV values amounts to approximately 57%, compared to around a 12% decline in petrol over the same period.

Petrol engine cars reduced by 0.4% or c.£135 in May. Diesel continued to split further away from petrol for the fifth consecutive month and fell by 1.1% or c.£210, along with plug-in hybrid at 1.1% or c.£285 and pure hybrid by 1.0% or c.£200.

Yea concluded: “Our wholesale supply of BEV sold data continues to increase month-on-month at a phenomenal rate, which has been fascinating to observe. We have already received around 70% of last year’s total trade sold volumes in less than five months, and April also recorded the highest trade volume of used BEVs sold in a single month – a real positive for both vendors and buyers.”