Lull looms for prices
September 25th, 2009 by Richard Aucock
FALLS in used car prices are on the horizon for the last quarter of 2009, warn price experts Glass’s.
Right now, they’re stable, after rocketing earlier in the year – but risk dropping as winter approaches, by around 2 and 4 percent.
It’s a big contrast to spring 2009, says managing editor Adrian Rushmore, where the rises were ‘without parallel.’ They were caused, he says, by there simply being no cars out there.
‘The improvement in prices this year was largely due to the much lower level of used car supply.
‘It is apparent that the correction is complete – in other words, the trade price of a car, plus a dealer margin, now equals the retail price that customers are willing to pay.’
Now, a trend is emerging. ‘There are already signs that some dealers are displaying vehicles with smaller margins in order to ensure that would-be buyers are not discouraged by price.’
That’s because retail sales are now expected to slow – a worry for car dealers, ‘who will have paid very high prices for stock.’
At least there won’t be an excessive increase in used car supply caused by the 59-plate registration change. This means the market is unlikely to destabilise – but even so, ‘there is now the threat of price falls for the first time this year.’
‘The balance of power may be shifting from seller to buyer for the first time.’
Mind you, as the usual fall during this period is 8 percent, it’s not going to be a complete disaster…