The latest report from Cap HPI highlights a significant trend in the used car market for April 2024, demonstrating a return to pre-pandemic pricing patterns and shedding light on the continuing challenges faced by electric vehicles (EVs). According to Cap HPI, prices for three-year-old vehicles with approximately 60,000 miles on the clock saw a decrease of about 1.5%, or £300. This change represents a natural alignment with seasonal trends, often influenced by factors such as the Easter break and market saturation after the first quarter's sales activities.

The decline in used car prices, although consistent over two months, is not a cause for concern among dealers. The fluctuations align with historical trends and are considered part of the regular market cycle. This period saw petrol vehicles maintaining popularity, selling more quickly than other types of vehicles. Conversely, EVs and diesel-engine cars lagged, posing inventory risks for dealers.

Particularly notable is the underperformance of EVs, which experienced the most substantial price declines among all vehicle types. The average price drop for EVs was 3.7%, which is significant compared to petrol and diesel vehicles, which saw declines of 1.0% and 1.9% respectively. High-profile EV models like the Toyota BZ4X faced severe reductions, highlighting a volatile segment that continues to adjust amidst broader market trends.

As the industry approaches the summer, traditionally a robust period for convertibles and coupe cabriolets, there is optimism for these vehicle types despite the broader downturn. However, the EV market remains uncertain, with potential for both substantial declines and sporadic increases as the sector seeks stability.

The situation underscores a critical period of adjustment and realignment in the motor trade, particularly for electric vehicles struggling to maintain their market value. As dealers and consumers navigate these fluctuations, the industry remains watchful of trends that could signal longer-term shifts in consumer preference and market dynamics.

You can read the original article here.