Used car prices stable
April 3rd, 2010 by Richard Aucock
CAP Black Book reports another month of used car price stability for April as supply and demand continue in balance.
This is because the new car sector remains fragile, which is ensuring there is no risk of used market oversupply.
Short-cycle business in particular is ‘dramatically’ down say the used car experts. This stability is set to continue in the coming weeks, it adds, despite a few jitters caused by the General Election.
‘The ending of official scrappage may well bring renewed focus by customers on used cars,’ reports the latest Black Book. ‘Such an increase could be significant in its impact on late stock in particular.
‘Because the exchange rate still does not favour the pursuit of volume for its own sake there is still a good balance of supply and demand.
‘Along with the ongoing step back from short-cycle business this suggests that the balance could swing toward a significant shortage of late stock.
‘In turn this could push prices up.’
Not everything is safe, though. CAP reckons the 4×4 market is ‘overheated’ right now – a 3 year old big 4×4 now costs as much as a 2 year old one did a year ago. This point should be noted (and watched) carefully…
Overall, though, average trade values are slightly increased at 3yrs/60,000 miles in every sector. Aside from 4x4s, the other big jump is more in line with expectation – the start of the convertible season heralded an average rise of 2.6 percent.
Tags: CAP, election, government, used car