Used car values have fallen by up to 4% so far in May according to new data from cap hpi.
It said the used market was undergoing a “market correction” and the pace of change has accelerated in May.
The 4% fall equates to an average of over £350 on a one-year-old car and over £300 on a three-year-old car.
Derren Martin, head of UK valuations at cap hpi said: “Some mainstream cars have had between £500 and £1,000 knocked off their value this month.
“The reasons for this are a realignment of values after some unprecedented strength in the market, which resulted in increasing or stable values in 2017 and 2018. Cars will naturally deflate in value, but this hit seems to be all happening over a short period.
“We are advising all our customers to keep a close eye on values in real-time with our Live product. The market is moving quickly, and I can’t think of a time in recent years where current data will have such an impact on profitability.”
The data also shows the lower medium sector at one year is down nearly 3% during May or £400 while the super mini sector at three years is down over 3.5% in May or £275.