The purchase of used cars is becoming an attractive option for the average motorist, with the latest data from Cap HPI revealing that the mileage for such cars has fallen.
The average used car aged between 2.5 and 3.5 years was clocking up 39,583 miles in 2008. This dropped to 31,199 in 2018, which is a decline of 21 per cent. This fall has been seen to a lesser extent in cars between 4.5 and 5.5 years old, with an average mileage of 62,504 in 2008 compared with 55,824 in 2018. This is a fall of 10.6 per cent.
There are believed to be several factors behind this trend, as explained by the head of UK valuations at Cap HPI, Derren Martin. He believes that the increasing use of finance options such as personal contract purchase and personal contract hire may restrict drivers who are trying to balance the miles driven and how affordable it is.
There is also an impact due to roads in the UK becoming busier and more congested. These conditions tend to mean drivers will endeavour to reduce the distances they drive and how regularly. The rise in petrol price may also partially account for this change.
Strong used car performance
Used cars in general had a strong year in 2018, according to the Cap HPI data. Those in the motor trade have termed it ‘the year of the used car’. The values on average for used one-year-old cars increased by one per cent – or just over £100 – in 2018. This is very unusual, as cars have historically depreciated as they age. This figure has been calculated by comparing all existing one-year-old cars at both the start and end of the year, ensuring that the data cannot be affected by newer models.
This is good news for the motor trade and emphasises the importance of businesses protecting themselves by ensuring they have their motor trade insurance up to date, perhaps through a broker such as quotemetoday.co.uk.
An even bigger increase was seen in the MPV market, which saw values increasing by five per cent on average in 2018. This equates to approximately £750. Some electric cars increased in value during 2018 by around 25 per cent.
This combines to make the used car market a significant consideration for the discerning consumer.