The UK used car market has becoming increasingly complex and volatile since the start of the year, with the number of value movements made by the team of editors at vehicle data analyst cap hpi rising 41%.
In a recent study of the used car market, cap hpi has found that values are becoming more erratic, and that so far this year, March and August have been the most volatile months, compared to January which was the most stable.
The company reported that there was a market realignment in H1 2019 following the strong year in 2018, with values beginning to decline, although this slowed during August.
Derren Martin, head of UK valuations at cap hpi, said: "The data shows the used car market is becoming more complex and volatile. Used vehicles reach the wholesale market through a multitude of routes that all impact on values.
“We also see the pace of the market accelerating as vehicles from the fleet and retail sectors are remarketed faster than ever. We believe that the most accurate data is achieved by combining technology and an experienced eye, especially as the whole system becomes more volatile."
The company determines vehicle values by using a wide range of data sources, big data, and a team of editors who examine current trends and movements in the market.
It says data indicates that the market should stabilise in the near future as demand and values begin to align.
Martin added: "With the increasing number of models, powertrains, options, and acceleration in generations, it's clear that the used market will only become more complex as time progresses.
“And while we don't expect any major shifts in the overall market, we are seeing an increasing disparity and volatility between makes, models and powertrains as consumer tastes shift.”
