Used car values suffered their biggest monthly fall in 12 years in October, hurting car retailers and threatening to drive up finance costs for new cars.
Values of three-year-old cars slumped 4.2% in the month, equivalent to a drop of £850 on average, according to the latest Cap HPI report. “There is no escaping that this is a considerable reduction in value,” the report concluded.
Used car values have now fallen 14% since April following an unprecedented spike during the Covid aftermath, when new cars become tough to get hold of, Cap figures show.
