Used car shortage
July 9th, 2009 by Richard Aucock
USED car values are breaking the usual seasonal trends and continuing to go up, say used car valuation experts.
HPI says that prices have risen for the fourth month in a row – despite the summer months traditionally seeing falls in values.
3 year old petrol cars led the increases, by going up 1.4 percent in June. Nearly new petrol cars were also up by 0.6 percent.
Diesel cars fared less well, but still posted small gains.
HPI says the increases are due to a lack of decent stock. Car dealers are thus facing shortages, and are having to bid higher than normal to get the cars they want.
‘The used wholesale market remains relatively buoyant,’ said HPI’s Martin Keighley. ‘The prices we see now are still on a par with last September.’
It’s low-mileage superminis and small cars that are most in demand, he explained. Higher mileage and larger cars will still struggle, relative to these cars.
‘Retail activity remains patchy,’ he added.
So what’s the outlook? ‘Summer 2009 is likely to be dominated by uncertainty,’ warned Keighley.
‘Some reports suggest that the green shoots of recovery have arrived, but these must be welcomed with caution.’
Even so, ‘despite the tough economic climate, the industry is hopeful that its prospects may improve in the coming months and the steps it has already taken will provide the basis for a sustained recovery, once growth returns.
‘Month on month rises will slow or stall over the coming months, but year on year values will keep improving.’
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