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THE used car market slowed in July and values broke a 12-month cycle of increases over the same month the in the previous year.

According to cap hpi, used car values at the three-year 60,000 point dropped -0.7%, compared to last year’s -0.5%. Derren Martin, head of current valuations, said: “The strength of the used car market over the last few months is due to lower supply and higher demand. Some mainstream manufacturers have reduced their volumes with a noticeable drop in pre-registration. Demand has switched for many buyers into the used car market.

“Looking forward, WLTP is likely to prompt some strong new car offers and pre-registration activity, to help sell those cars that do not meet new guidelines. Demand from rental companies may help manufacturers register some of these cars, but at a cost. All of this adds up to an unclear picture for the used car market; some of the above factors could aid used car values, others could be detrimental.”

City cars and superminis dropped in value by slightly more than the average movement. SUVs, despite being almost 20% of the used car volume outperformed the market, with regards to prices achieved.

Values dropped, but only by 0.4% at three years old. The main strength was in the medium SUV size of car, with some models such as the Nissan Juke (petrol), Renault Kadjar (petrol and diesel) and the Skoda Yeti (petrol) rising in value.

With regards to demand for used diesel cars – a hot topic with new car sales diminishing for this fuel-type – respondents to the survey were almost unanimous that demand remained unaffected.

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