Motor Industry News
MyCarCheck.com/Trade Used Car Market Overview June 2014:
Cabriolet prices low as PCP popularity boosts 3 year old supply
- 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 Car Valuations at MyCarCheck.com/Trade, Alan Senior, commented: “June is traditionally a fairly quiet month for used car buying, with the exception of the soft-top market, which is normally at its best as spring turns to summer. However, dealers are telling us that this business is very slow, particularly on Mini cabriolets where oversupply means they have to be priced low to sell.
“Used values in general are under some pressure at the moment due to a number of factors tipping the supply balance. In particular, the recession, personal contract purchase (PCP) schemes and incentives on new cars.
“Throughout the longest downturn anyone can remember (and some argue we are still in it), most used car values remained reasonably stable after the initial blip. The reduced number of new cars sold kept the flow of part exchanges down, demand outstripped supply and used values stayed strong.
“We are now entering a period where there are more three year old cars coming into the supply chain again, largely thanks to the success of PCP. These customers can walk away from a car after a set lease period and drive away in a new model if they want to. UK new car buyers have really embraced it and, as the general cost of living spirals, many believe it is now the only practical way to drive a new car.
“With PCP, people can judge pretty accurately what their monthly motoring expenditure will be, as any repair bills are likely to be covered under warranty. When you add in the generous incentives that manufacturers have been offering, it is no surprise that new car sales are on the up again.
“The question is: What does all this mean for the used market? Car manufacturers, finance houses and dealers are still trying to work out the full implications of the shift towards PCP. The most obvious impact has been a marked drop in the values of late registered vehicles. List price is not such an issue any more. It is all about low monthly payments. PCP deals on used cars is definitely another trend to watch.
“Interestingly, the impact on values of late highly desirable models (such as Audi Q5, Range Rover Evoque and Mercedes A Class) has not been so great. The demand is still there for these due to longer lead times for new build cars. Many premium brands are experiencing longer waiting lists at the moment, mainly because the European markets are steadily becoming more active.”
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 35 years’ experience in used car valuations. After a decade running a franchised dealership he spent 20 years at CAP where he was Senior Editor of the Black and Red books and co-founder of the Green book, then two years as editor of Parkers Guide before co-founding VIP Data valuation services.
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.