Used car values under pressure - CAP
Pressure on used car trade values is set to mount in the next few weeks, according to the independent pricing experts CAP Automotive.
A bumper new car month in March spells significant imminent increases in supply as hundreds of thousands of part-exchange cars return to the market – just as the Easter holidays herald a typical seasonal slowdown in demand. This is the view of CAP Automotive’s Black Book Live, the real-time used car values trending tool used by professionals across the UK motor industry.
Higher volumes of vehicles in the marketplace this year, compared with the same period in 2014, means values have already been tracking slightly lower than a year ago. But pressure on trade values is expected to increase imminently as more March new car orders are delivered, sparking a further influx of trade-in cars. CAP experts researching the market daily have reported a slowdown in buying activity from many of the large used car retailers who are already fully stocked or exercising caution ahead of a ‘normal’ Easter break reduction in retail demand.
CAP Black Book Live Senior Editor Derren Martin stresses that there are no grounds to fear a used car values ‘meltdown’: “The market has enjoyed such a stable time over the past few years that any departure from that will be particularly apparent now that more typical seasonal patterns are being re-established. Dealers are also particularly vociferous in their complaints about the relatively high values of the best quality, low-mileage cars at present because margins are under sustained pressure”.