Industry used car price guide Glass’s have cut average used car values by 5% in its June edition as supply continues to exceed demand.
“We believe the current conditions are ripe for a market correction to prices.
“This is why the average movement to values this month amounts to around 5%,” said Glass’s Guide managing editor Adrian Rushmore.
Glass’s said pressure on consumer spending, a rise in inflation and surplus stock in what is usually a quieter period of trading means retail sales prospects are unlikely to improve during the short term.
“It may be the end of June before the surpluses have been cleared,” it said.
“One thing is for sure, at the moment there are more cars being advertised than there are customers waiting to buy them,” Rushmore continued.
Glass’s said car dealers will need to review pricing more regularly, ideally once a week and turning over stock more frequently will also be imperative.
“Because lower conversion rates have resulted in an increasing number of re-entries, vendors will be increasingly anxious to achieve sales,” said Rushmore.
Source: Motor Trader