Used car price guide CAP have revised values for used cars down 5% for its May issue and said this “did not fully reflect how tough it really is out there”. They say the used car market witnessed a “dramatic” deceleration in April with “vast numbers of vehicles failing to sell” in the open market. (Motor Trade Insider – Used car prices plummet)
Cap also revealed that auction conversion rates fell dramatically and the cars that did sell, were on the whole achieving values considerably below CAP published April values. Cap put this down in part to large volumes of poorly specified, high mileage and generally unattractive vehicles hitting the market; “The problem is therefore the stock available, rather than a lack of demand for stock at all,” CAP revealed.
In addition some manufacturers going “all out” to switch late plate buyers into new cars instead, inevitably overpaying for the trade-in has also caused problems for the used car market.
Another cause is some manufacturers once again boosting their market share by self-registering, and there is also a very substantial increase in the number of 10/10 plates now appearing in the market due to decisions made to replace short cycle cars.
Source: Motor Trader