Car market update: June '09
Let's jump straight in with the news that used car prices have risen for the 6th consecutive month. According to British Car Auctions (BCA), their average used sale price in May increased by 2.3% compared to April, with a 5.7% increase year on year.
Many people in the industry, including here at Sell Car, have been predicting a downturn in used prices. Yet, although the rate of increase has slowed, prices seem to be holding firm. However, the consensus still appears to be that prices will gradually return to a lower base level.
One factor to consider is that many businesses extended the lease on their fleets last year during the worst of the economic downturn. Those leases may start to come to an end in a few months, releasing more used stock into the market – potentially bringing prices down.
As for our old friend Scrappage...
...It isn't having too much of a negative effect on the used car market. If anything, it may have helped to keep stocks of available quality used cars low, with over 60,000 scrappage deals processed so far. (Every old car traded in under the scheme is scrapped entirely.)
So, if you're wondering “who'll buy my car while scrappage is running”, you can still get great rates while demand for quality used vehicles remains high!
The Guardian also points out that scrappage isn't quite all it's cracked up to be. According to the article, the £2000 reduction on a new vehicle is often off the full list price only. In many cases, you'd be better off selling your old car and finding a lower cash deal elsewhere. However, there are some smaller cars, such as the Toyota Aygo, which do seem to offer a good deal when bought under the plan.
As has been the case for at least the last few months, we're recommending that if you've been thinking “should I sell my car?” then now is the time! Prices are still at a very attractive level. And, at Sell Car UK, we can help you sell quickly and easily.
On a final note – it's always heartening to see vehicle clockers getting the punishment they deserve (as this AM Online piece highlights). We've got no time for dodgy dealers in this industry, and the more that are kicked out – the better!
Many people in the industry, including here at Sell Car, have been predicting a downturn in used prices. Yet, although the rate of increase has slowed, prices seem to be holding firm. However, the consensus still appears to be that prices will gradually return to a lower base level.
One factor to consider is that many businesses extended the lease on their fleets last year during the worst of the economic downturn. Those leases may start to come to an end in a few months, releasing more used stock into the market – potentially bringing prices down.
As for our old friend Scrappage...
...It isn't having too much of a negative effect on the used car market. If anything, it may have helped to keep stocks of available quality used cars low, with over 60,000 scrappage deals processed so far. (Every old car traded in under the scheme is scrapped entirely.)
So, if you're wondering “who'll buy my car while scrappage is running”, you can still get great rates while demand for quality used vehicles remains high!
The Guardian also points out that scrappage isn't quite all it's cracked up to be. According to the article, the £2000 reduction on a new vehicle is often off the full list price only. In many cases, you'd be better off selling your old car and finding a lower cash deal elsewhere. However, there are some smaller cars, such as the Toyota Aygo, which do seem to offer a good deal when bought under the plan.
As has been the case for at least the last few months, we're recommending that if you've been thinking “should I sell my car?” then now is the time! Prices are still at a very attractive level. And, at Sell Car UK, we can help you sell quickly and easily.
On a final note – it's always heartening to see vehicle clockers getting the punishment they deserve (as this AM Online piece highlights). We've got no time for dodgy dealers in this industry, and the more that are kicked out – the better!
posted by Admin at
13:46
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