Used car market remains ‘fragile’ says CAP

PRICES for used cars continued to fall into June as slow retail sales left dealers with little need for replacement stock, according to CAP the used car pricing experts.

Average values in the June edition of the independent benchmark trade values guide, Black Book, were down by 3.8% at 3 years and 60,000 miles.

Although this represented a slightly better performance than May’s unusually severe drop of 4.6% there are still few signs of any significant improvement in the market.

Black Book Editor, Tim Bearder, said: “Unfortunately the most positive thing we can say about the current market is that the rate of decline eased during May. Even the small improvements in auction conversion rates were less about growing buyer interest and more about vendors accepting lower bids instead of holding out for unrealistic money.

“There was a period during the early days of May when it seemed the market might be returning as dealers saw a brief increase in retail interest. But dealers were generally still overstocked after March’s influx of part-exchanges and therefore had little or no need to replenish any stock they did sell.

“There remains a glut of poor quality cars, with high mileage, that will need to be cleared out before the market can begin moving properly again.

“As consumers continue to pursue the most economical vehicle options possible it comes as no surprise that diesels are outperforming petrol engines. But one interesting development in the June edition of Black Book is that, for the first time, diesels are outperforming petrol in the convertible sector.

“This indicates that even a sector which has always been about image before economy is becoming increasingly sensitive to running costs.

“Overall, this is a buyer’s market and looks to be remaining that way for some time to come.”

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For further information contact Mike Hind, Communications Manager, CAP on 0113 222 2044 / 07710 152030

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CAP used car pricing and technical information has been trusted by motor trade professionals for more than 30 years. The company provides trusted and accurate pricing and technical information on cars, vans, motorcycles and trucks to the UK automotive industry every day. As well as helping dealers, fleet operators, insurers, vehicle manufacturers and finance providers, CAP information also operates at the heart of many leading vehicle marketing websites and car sales portals, including Britain’s largest – AutoTrader – helping consumers safely make the best informed decisions about their purchase choices.

CAP, Capitol House, Bond Court, Leeds LS1 5EZ
Telephone: 0113 222 2000 Facsimile: 0113 222 2001 www.cap.co.uk