How have valuations fluctuated since 2021?
In partnership with Cap hpi, we’ve carried out some research into how valuations have fluctuated during the past 2-3 years. We hope to use this insight to understand what the rest of 2023 may hold in terms of valuations. All valuations are based on a comparison of the same set of vehicles at the 3-year age point unless stated otherwise.
Though a normal deflation of values would be within the minus 3-5% range, 2021 saw an extraordinary increase of 29.2%, in what was an unprecedented year.
As one year turned into the next, 2022 saw a significant difference, with values dropping by an average of 3.1%.
This year, we’re pleased to see the market return to a relatively stable state. Petrol and diesel vehicles increased in value by an average of 0.1% at the 3-year age point. However, values differed greatly depending on age. 1-year-old vehicles dropped by 0.7% (c. £350), while vehicles at older ages increased by 1.5% at 5 years, and 3.1% at 10 years. (that’s c. £100 and £120 respectively).
Unfortunately, the same could not be said for Electric Vehicles. They saw their heavy drop in the last quarter of 2022 worsen in January to an average of 6.6% (c. £2,050). Tesla Model 3 has reduced by an average of 33% (c. £13,275) in the past 4 months alone, while Model Y values decreased by an average of 11.1% or (c.£5,500). In fact, the rear-wheel-drive model alone dropped by a sizeable 14.1% (c.£6,800).
February continued in a similar vein to January with petrol and diesel cars increasing. Younger cars remained relatively stable once again while EVs continued to drop in value.