Experts reveal the top used car buys that are rising in value
A surge in demand for petrol, hybrid and electric vehicles has led to a strong used car market in those sectors, according to automotive data experts Cap HPI. With the demonization of diesel cars, motorists are forced to look elsewhere for rock-bottom running costs, leading to impressive resale values for some of the most popular city cars on the market.
The value of used cars overall rose by 0.4 per cent in March, with average values up by 1.2 per cent since the start of the year. That's compared to a 0.7 per cent decline in 2017.
Certain models have benefitted highly from this. The Skoda Citigo, for example, has actually seen appreciation – a three-year-old example with 30,000 miles on the clock is now worth around £700 more than the same model would have been worth a year ago. If a customer purchased a Citigo last year, and sold it this year with a further 10,000 miles on, they'd still earn around £200 in appreciation.
Other city cars, such as the Kia Picanto, Seat Mii and Toyota Aygo have also benefitted from similar price increases.
Another sector that's seen a strong increase is the electric vehicle market. Small electric city cars, including the Peugeot Ion, Renault Zoe, Smart ForTwo Electric and Citroen C-Zero have all seen their prices increase.
Derren Martin, head of current valuations at Cap HPI said: "What we are seeing is some cars in particular sectors increasing in value over a relatively short period. The scale of this is unprecedented as cars are generally regarded as a depreciating asset. Some consumers are now starting to reap the rewards of picking up a vehicle 12 months ago, putting 10k miles on the clock and still seeing the vehicle's value rise very steadily.
"The sectors showing the main areas of appreciating values continue to be city cars, superminis and lower medium-sized cars. Also, some petrol and hybrid SUV prices in the used market have shown real strength in recent months – there is strong demand and currently relatively low supply.
"Drivers are beginning to warm to EVs as confidence grows in availability and reliability. The increase in demand for smaller vehicles that are pushing up values is partly as a result of consumers downsizing but also a desire for petrol vehicles."