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THE used market has seen overall values rise 0.6% in January compared to an average decline for the last eight years of -0.4%, according to data experts at cap hpi.

The average rise for vehicles at the three years and 60,000-mile point was mirrored by strength in the small car sectors during the month, with average upward moves for both City Car +2.6% or +£120, and Supermini +1.8% or +£111.

Jeremy Yea, senior valuations editor at cap hpi said: “January has, in most recent years, been the month where it can generally take a while for wholesale trading conditions to gain momentum and get going, but the strong start to the year has broken this previous eight-year trend, and it is fair to say it has started with a bang.

“Trade buyers have been out in force to buy up as much stock as physically possible. It is due to some operators going into the festive period with slightly less stock than in previous years, planned or unplanned, and the strong upturn in retail demand.”

The lower medium sector has also seen an overall increase during the month of +0.8% or £62. The popular sector continues to be in demand at the right age and mileage points. The data shows some younger low mileage and late plated vehicles have come under pressure.

The SUV sector has seen an overall increase of 0.4%. However, it is a mixed picture depending on size, mileage and age. Large SUV’s have dropped by -0.9% at the 3yr 60k point, which demonstrates the less positive market sentiment on larger vehicles, but small (+0.3%) and medium (+0.6%) SUV’s have increased in value at same age and mileage.

Despite the average movement for the electric sector being positive, the performance of certain models has been mixed.

Values for the Jaguar I-Pace (18-), Audi E-Tron (18-), Nissan Leaf (17-) and VW Golf (14-) Electric continue to see a reduction in values. While there has also been strong demand for models such as the BMW i3 (13-), Nissan Leaf (10-18), Renault Zoe (13-) and the Tesla Model S (13-) which have seen values rise throughout January.

Yea added: “The February wholesale market is usually one of strength and with this latest surge in demand and retail activity throughout January, we are likely to see another month of a strong used car market.

“With wholesale volumes naturally declining throughout the month, supply and demand dynamics could come even more into play and could add some additional heat to an already heated and buoyant market place.”

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