Despite an unprecedented 25 per cent rise this year in prices of cars up to one year old, industry car valuation guide Glass’s is urging would-be car buyers to buy now. As MTI have been reporting for a while now used car stocks have dwindled to an all-time low, prices may go still higher, and the choice of vehicles is likely to become even more limited.
“The remarkable and unparalleled recovery in prices since January might appear out of step with a depressed economy, but in reality the higher prices stem more from the limited supply of used cars rather than a significant increase in retail demand,” says Adrian Rushmore who is Managing Editor of the Guide and prone to stating the obvious. “Consumers should be warned that prices are not expected to fall in the coming months, as the supply of vehicles becomes even more constrained.” He goes on to say.
Glasses rival publication CAP also reveals that used car supply shortages are continuing to push prices higher. CAP’s research team believes there is no early end in sight to supply constraints and expect further reductions in the number of cars returning to the used market over the coming weeks.
The impact of all these factors is a further average 1.5% increase in average used car values reported in the August edition of CAP’s Black Book.
CAP also reveal that the stars of the market are convertibles and coupe/cabriolets which, despite the poor summer weather of recent weeks, have enjoyed value increases for August of 2.3% and 3.5% respectively, at 3yrs/60,000 miles. MPVs are also performing especially strongly.