Used cars set for soft landingThu, 31 Oct 2013
THE USED CAR MARKET is set to see a gentle slow down towards the end of the year, avoiding the price crash feared by some in the industry.
Experts at CAP Automotive say there are no shocks on the horizon as used car prices are not reducing as quickly as previously expected. This is due to high demand for quality used cars and limited supply.
Derren Martin, Editor of CAP’s Black Book Live that monitors used car price changes, said: ‘Because retail demand remains good for the time of year, dealers are reluctantly buying cars and absorbing the cost of reconditioning them. Retailers still need to fill their forecourts, so buying those older cars has become a reluctant necessity. This is keeping used car prices strong.’
He added: “There are over 2 million fewer used cars in the marketplace than before the recession, so there is no imminent threat of a return to the days of severe oversupply. With a soft landing predicted for quarter 4, this also makes any dramatic increases in values less likely as we enter 2014. In short, the market remains fairly robust and we foresee no unpleasant shocks in the short to medium term.’
By Press Association reporters