Strong Performance in Used Car Market in May, but Decline for Battery Electric Vehicles (BEVs) – Cap HPI Data Shows

The used car market has been a hot topic of discussion lately, with new data from Cap HPI revealing some interesting trends. In May, the market performed ahead of seasonal expectations, but there were continued falls for battery electric vehicles (BEVs).

According to Jeremy Yea, senior valuations editor at Cap HPI, the average values of used cars fell by 0.9% in May, marking the strongest movement since 2012. However, there was a significant decline in values for BEVs, with a 3.6% decrease at the three-year age point.

Yea noted that buyers are becoming more discerning in their choices, prioritizing retail-friendly vehicles in good condition and desirable fuel types. This trend has led to a strong demand for convertibles and coupé cabriolets, which saw an increase in value at the three-year age point.

On the other hand, superminis and lower medium cars experienced only slight drops in value, indicating a strong demand for cheaper, fast-churning stock. Diesel cars continued to diverge from petrol cars, falling by 1.1% in May.

Despite the decline in BEV values, Yea remains optimistic about the market, noting that wholesale supply of BEV sold data is increasing at a rapid rate. In fact, April recorded the highest trade volume of used BEVs sold in a single month.

Overall, the used car market is showing resilience and adaptability in the face of changing consumer preferences and market conditions. It will be interesting to see how these trends continue to evolve in the coming months.