TRADE PRICES in the used car market are more stable than at this point last year, according to CAP.
A year ago the average reduction in values between July and August – the heart of the typical summer trade activity lull – was 1.6 per cent, at the three years and 60,000 mile benchmark. This year average values have only reduced by around one percentage point.
The figures are revealed in the latest market commentary for Black Book Live, CAP’s real-time independent benchmark guide to current trade values.
Ongoing strong retail demand for used cars has provided much-needed balance for a market which has been heavily supplied for much of the year. Black Book Live reports that auction inventory has been kept high by large numbers of part-exchanges over recent months, together with increasing supply directly from manufacturers.
But conversion rates of just under 70% were slightly stronger than during July last year and there have even been signs of increased buying activity for poorer condition cars than CAP saw during the past few months.
Late plate cars are now the most vulnerable to downward trade price pressure, according to Black Book Live senior editor, Derren Martin.
He said: “Prices of late plate cars do seem to be affected more than older offerings, and this is particularly noticeable in the City Car sector. This is a sector where new car PCP has been popular and these keen new car offers do seem to be impacting on used prices to a certain degree.
“Other sectors are also affected, particularly when there are a high number of “delivery-mileage only” cars in the market. Over the last two months we have seen a noticeable increase in the number of cars under six months old being sold.”