Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview June 2013:
4% price drop on larger 4x4s and model mix imbalance emerges
- Unlimited car, van & motorcycle valuations for £99.99+VAT a year
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- For further details visit: www.mycarcheck.com/trade
MyCarCheck.com/Trade is the trade valuations arm of CDL Vehicle Information Services. Based on cutting-edge industry data and feedback from independent and franchised dealers, these monthly bulletins highlight the most significant trends in the UK used car market.
Head of Valuation Services at MyCarCheck.com/Trade, Gavin Amos, commented: “The month following the bank holiday period normally brings some welcome stability to the used car market. This year values for most models have been holding up strongly, with some notable exceptions. Convertibles and coupes are still out of favour and there has been a weakening of values on 4x4s, especially older larger models such as the Range Rover, Mercedes M-Class, Hyundai Santa Fe and Mitsubishi Shogun. For June we have reduced these values by up to 4%.
“Looking ahead, perhaps the final quarter of 2013 will see supply increasing and values easing. There is already plenty of choice in the super-mini segments – Fiesta, Mini, Corsa etc. – and this is putting some pressure on values. Clean low mileage examples are still thin on the ground though and these values will continue to buck the downward trend.
“A problem looming ever larger is the imbalance in the model mix available to used car buyers. The issue is that demand in the used market doesn’t always match the choices that new buyers made a few years previously. Because of the disproportionately high number of small cars registered, if you are looking for something with more space, then the choice is quite limited; particularly if you don’t want a people carrier or SUV.
“Since 2007, ‘A sector’ registrations (mini or city cars such as the Citroen C1 and Ford Ka) have more than trebled, ‘C sector’ registrations (lower medium-sized cars such as the Ford Focus and Vauxhall Astra) have dropped by a third and ‘D sector’ registrations (upper medium-sized cars such as the Ford Mondeo and Vauxhall Insignia) have nearly halved. Meanwhile, sales of sports cars have also declined by a third as people opt for a more versatile choice, such as an SUV.
“There is a ‘premium versus non-premium’ angle to the model mix issue too. Premium brands have done really well over the last five years, with registrations surpassing manufacturer expectations. The appeal of a premium brand goes a long way in the new market – they tend to have strong residual values and the monthly rates can be very competitive for lease/contract hire. However, many used buyers are wary of premium brands because they associate them with higher servicing, maintenance and running costs.”
MyCarCheck.com/Trade provides buyers and sellers with all the vehicle price data they need: ready to retail, trade, average, retail and Cat D. As a free bonus, it also provides the annual road tax cost and key DVLA information, including the make, model, colour, engine size, body style, fuel type and date of registration.
Simply enter a car, van or motorcycle registration and the vehicle’s mileage to get an accurate valuation and additional information in an instant. Once signed up you can check as many vehicles as you like at no extra cost.
The MyCarCheck.com/Trade team includes:
Gavin Amos has 15 years’ experience in the used vehicle sector. After starting out at CAP he worked in several dealerships, progressing into management. He has hands-on experience of sourcing and disposing of stock, both to trade and retail customers.
Alan Senior has spent 34 years in used vehicle valuations. In 17 years at CAP he was Senior Editor for both the Black and Red books.
David Hill specialises in LCVs. He worked with Renault, LDV and Isuzu Trucks before spending 10 years as CAP’s Light Commercial Vehicle Editor then 5 years as national used vehicle sales manager for Iveco. He joined CDL in 2011.
Rob Hobson specialises in motorbikes and scooters. After leaving a dealer role to launch CAP’s Green Book, he worked in business development for Piaggio.
Gerry Clancy specialises in motor auctions. He has been selling trade valuation products since 1997 with both CAP and Glass’s.