Motor Industry News
MyCarCheck.com top tips for used car buyers June 2014:
500, Passat & Octavia VRS praised as PCP impact increases
MyCarCheck.com - the UK’s No.1 consumer vehicle data provider - has saved millions of people from making an expensive used car mistake. In these monthly bulletins its used car experts reveal significant trends in the UK market and suggest three wise buys.
- Highly desirable: Fiat 500
- Safe bet: VW Passat
- Used star: Skoda Octavia VRS Estate 2.0TDi
Head of Valuation Services at MyCarCheck.com, Gavin Amos, commented: “Our highly desirable model this month is the Fiat 500. This fashionable little car is instantly recognisable, very safe and the ride isn’t as bad as some would have you believe. So long as you carry out a history check to ensure the one you’re looking at is what it claims to be – for instance, that it isn’t still on finance – the 500 has a lot going for it.
“In terms of cars that hold their value, safe bets don’t come much safer than the VW Passat. Often described as ‘the boring Golf’, the Passat is a great family car. There are plenty of them around so you can afford to be picky. As always, do your homework and check before you buy.
“For our ‘used star’ this month we’ve chosen the Skoda Octavia VRS Estate 2.0TDi. Any badge snobbery around Skoda is all but gone when it comes to the sporty VRS variants. Although these don’t come cheap due to the limited numbers available, the VRS Estate’s combination of practicality and performance make it a very attractive proposition. When it comes to negotiating on price, remember, as well as revealing a car’s history, MyCarCheck.com also provides vehicle valuations – a great tool for haggling with dealers or private sellers.”
As to market trends, Head of Car Valuations at MyCarCheck.com, 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.”
Over the last couple of years, MyCarCheck.com, MyMotorCycleCheck.com and MyTextCheck delivered around 4.5m consumer checks including those via AutoExpress and WhatCar?.
We use up-to-the-minute data from the Police National Computer (PNC), the Driver and Vehicle Licensing Agency (DVLA), the Association of British Insurers (ABI) and major finance houses including Lloyds TSB and Santander.
Our information is trusted by the UK's leading brands. MyCarCheck.com’s parent company, CDL Vehicle Information Services, performs around two million look-ups a week for companies including CompareTheMarket, Confused.com, Go-Compare, Moneysupermarket, Swiftcover and Tesco Compare.
To help UK consumers make the right choice, MyCarCheck.com can confirm in seconds whether your potential pride and joy has ever been scrapped, stolen or written-off, has any money owing on it, has had a plate or colour change and much more.
Know what you’re getting into: MyCarCheck.com