Car dealers have been warned to pay closer attention when appraising part-exchange vehicles in order to maximise profits during this turbulent period of economic instability.
Vehicle condition is more important than ever, according to Manheim Auctions, as trade buyers are significantly reducing trade values for damaged or missing items.
Its research found that broken windscreens devalue cars by between £100 to £300, cracked headlights by £75 to £150, whilst serious damage to alloy wheels could lose as much as £50 to £150 per wheel.
Poorly repaired accident damage affected a vehicle’s value by up to £250 per panel and interior condition affected prices by between £100 and £350.
Aside from the condition of the car, the age old issue of documentation was also found to significantly affect re-sale values.
A typical three-year-old car with no service history could lose £200 – £500 and missing V5s cost £200 to £300. Expired MoTs cost between £150 and £300.
“As the tough market continues I think that there is little prospect of trade buyers not coming down hard on damaged or missing items for the foreseeable future,” said Mike Pilkington, managing director for Manheim’s auctions and remarketing division.