Used values steady as market gets back to business

Used car sales remained relatively steady in December with Cap Black Book recording an overall reduction in average prices, based on three years/60,000 miles, of just 1.6 per cent.

“The December market saw pockets of activity amid the ongoing downturn,” said Cap communications manager Mike Hind.

“Notable was the market beating performance of 4x4s, which out-did even the reliably robust supermini sector during the month,” he said.

Cap interpreted this as evidence that off-roaders have, at least for the time being, reached sufficiently low prices to release some previously pent-up demand. One Cap researcher witnessed a bidding war for a Range Rover with seven previous owners.

Used car supply levels remained low in December with little premium quality product on offer in the open market. Cap said this was due to the weak new car market bringing in fewer part-exchanges and contract hire businesses extending leases.

“According to dealers, the period between Christmas and New Year was in the main worth opening for and January began with a lot of intense bidding for stock. Notable was the large proportion of independents compared with franchise dealers looking to refresh their forecourts,” said Hind.

With businesses now trading for over a week after the seasonal shutdown the used car analyst does not expect the market to pick up during the first quarter

“With little change in the availability of credit the likelihood of an upturn must remain in question and Cap remains sceptical that a significant sustained recovery is emerging at this stage,” he said.