The used car market remained stable in March although values for battery electric vehicles (BEVs) saw a further fall, Cap HPI has reported.

Cap says used car sales have remained healthy within an overall upbeat and stable retail marketplace

Average values at three years/60,000 miles fell 0.1%, or equivalent to a c.£70 reduction. The decline came after values recorded their first growth in nearly a year during February – but marked the third strongest March into April monthly movement since 2019.

One-year-old vehicles also decreased by a minimal 0.1%, with the five-year and 10-year age points also decreasing in value by 0.7% and 1.8%, respectively.

Jeremy Yea, senior valuations editor at Cap HPI, said: “Used car sales have remained healthy within an overall upbeat and stable retail marketplace. The consensus is that consumer enquiries remain at good levels. This return to what can only be described as ‘normal seasonality’ has been a much-needed period of stability welcomed by retailers during this important first quarter of the year.”

Older high-mileage and damaged stock continue to be the most challenging part of the market, with further deductions seen throughout the month.

But competition remains strong for cars in good condition with low mileage and holding good provenance across all mainstream vehicle sectors.

Yea continued: “These are viewed as fast-churning good retail stock, where competition remains strong despite the increase in wholesale supply levels throughout this new registration plate month. This injection of increased used supply into the market has certainly not dampened the desire to buy, and current supply and demand levels are still well matched.”

City car was the strongest performing mainstream sector, increasing by 1.1% or c. £80 at three years. MPVs dropped marginally by 0.1% or c.£40, and SUVs remained level. Supermini fell by 0.2% or c.£20, lower medium was down 0.3% or c.£40, and upper medium fell 0.4% or c.£60.

Jeremy Yea, senior valuations editor at Cap HPI

The data also showed mixed performances by the different fuel types. Hybrid and petrol increased by 0.5% and 0.2% respectively. In contrast, diesel decreased by 0.3%, plug-in hybrid was down 0.7% with BEVs further declining by 2.3% or equivalent to £525.

BEVs that have seen values reduce at three years in March are the Citroën C4 (-6%/£600), Hyundai Ioniq (-4.9%/£500), Nissan Leaf (-5.9%/£600) and VW ID.3 (-6.1%/£880).

However, the BMW iX (2%/£600) and the Mercedes EQA (1%/£200) increased values. Of all the BEVs valued at three years, 75% saw values reduce, 20% remained level, and just 5% saw values increase.

Yea concluded: “The availability of electric vehicles in the used wholesale market continues to expand, offering buyers a greater selection than ever before. In terms of sold data, we have already received nearly 40% of last year’s total sold volume in the first three months of the year. However, BEVs still only make up around 4% of all the sold data we have received this year, across all vehicles of all ages and mileages, although that does increase to c.12% for cars up to three years old.

“As the electric vehicle market continues to mature, there could be some further adjustments to come as a number of manufacturers compete on price and try to hit ZEV mandate targets. A continuation of strong new car offers and registration activity is likely to remain and, therefore, may further impact values.”