Direct sales may be better than second hand market for secondhand sellers, CAP figures suggest

Owners who are currently looking to sell a car could be better off selling a car for cash than placing their vehicles on the second hand market, as new figures show the value of used cars at dealerships has dropped by 4% in recent weeks.

CAP, the provider of vehicle valuation data and new vehicle information, says that the downturn is due to a tail-off in the number of car buyers looking to purchase a car through retail and a fall in the general quality of cars coming on to the second hand market. It says that a "large and increasing number of vehicles which are not in clean condition are failing to sell at all.

Car Dealer Magazine notes that though many used car buyers are being put off by the number of vehicles that would have significant refurbishment costs attached, "cars in good condition still make good prices" and that a key step to selling a car is to make sure it is in a suitable condition for a new owner.

The figures come in the same week that RAC Warranty released a report that indicated used car buyers are prioritising reliability over other factors when purchasing a secondhand vehicle. Ian Simpson, sales and marketing director of RAC Warranty said that his company's report showed used car prices were declining for "all but the very best stock", driving prices up for secondhand cars in above-average condition.

"The general mentality of customers at the moment is that they want to buy vehicles that are trustworthy," said Mr Simpson.

Andrew Wilkinson, Evesham, VOLKSWAGEN CARAVELLE

Teresa Grieves, Essex, Kia Sportage XS CRDi