Car Dealer Magazine is running a great story about how Cap HPI is showing that the value of some used cars has shot up by a breath-taking £8,000 in the past three months. Eight grand in three months! How come? High demand/low supply will do it every time. It’s basic economics, innit.
To be fair, Cap HPI has been reporting vast leaps in prices for some time now. June alone sawe a jump of 4.8% at the three-year point, equivalent to over £625 per car, after a 2% increase during April and 6.7% increase in May, so that, on average, values rose by a staggering £1,700 or 13.5% in April-June, while one-year old cars shot up an average of £2,500.
Derren Martin, Head of Valuations at Cap HPI said: “Consumer demand has remained very strong in June, despite half-term, great weather, and Euro 2020 to distract people. With stock-turn high, this has led to retailers requiring a constant supply of cars to replenish their forecourts.”
By way of an update, Car Dealer Magazine is reporting that some cars are even seeing a full £8,000 price increase over the past three months, and that cars of just about every size and type are seeing their value leap.