New Cars

Timing is everything.....and NOW is the time!

As 2009 progresses (is it really March already?!), the long term direction of the economy and motor industry remains unclear. Year on year production and registrations continue to show massive declines and, at current levels, there are simply too many car manufacturers and too many models for the size of the “new” market.

Towards the end of last year, with the impact of the credit crunch in full force, dealers panicked and disposed of their stock at almost any price. As we entered the New Year, with new budgets and fresher, more positive mindsets, dealers realised that they could not possibly achieve their targets without having sufficient good quality used cars to retail. This resulted in a stampede to the auctions and other used car purchasing sources. Used car values, for the first time in many years, started to appreciate and this has continued to today.

But it is a brave person who thinks this will continue! The facts, rather than sentiment, will dictate the future and these are clear:

- Manufacturer production down circa 60% year on year
- New car registrations down circa 28% year on year
- Car dealers panicked in last quarter of 2008 and sold out, at almost any price
- Fewer new car registrations in 2009 resulted in fewer quality used cars purchased in part exchange, with dealers en masse bidding for stock to fill gaps on their forecourts, forcing prices up
- Used car sales, from forecourts, remain suppressed....it’s ok paying strong money to stock cars, but they need to be sold on!
- Prices achieved against book values at auction today, compared with 2 months ago, are lower, indicating the peak has been reached, albeit it seems to be a U-shaped peak rather than V-shaped.

There are, arguably, still a few weeks remaining, in our opinion, before the market reverts to norm, meaning you, the seller, still have a little time left to avail yourself of the current upward “blip” in used car valuations.

To sell my car today, please complete our online request a quote form. Sell your car today to Sell Car UK!