Archive for April, 2009
Used Car Prices Increasing
We have been hearing about how the motor trade has declined in business over the last 18 months or so due to the current recession. New car sales down 60% etc. But in the background the used car market has been gaining momentum and with the lack of trade ins coming through the main dealers in some cases a shortage or cars, that has in many cases driven up the prices of used cars.
Last week it was suggested that in the UK, some new cars were cheaper than the same car pre owned. Of course this has fed down to the car auction scheme and the price of salvage cars. With around 3m vehicles been taken off the road each year either through old age or by accident and much less new cars being bought, it should be no surprise that soon the demand will be more than the supply. Even salvage cars has risen in price with many using services like SalvageSpareFinder, surprised that their proxy bid are no longer enough to buy that car, that only a few months ago would have been much cheaper.
Dealers who tend to use their nose to calculated trade prices are being forced back to the trade books to revalue their potential stock and whilst all this goes on new car dealers sit and wait for the up-term. Many businesses had opted to lease cars rather than pay out large sums to buy which has kept some new car sales going, but with the media news that it could be cheaper to buy new and used, this year may see a huge upturn in the new car market.
So there are 2 considerations when buying a used car or salvage project. Either buy now before prices increase, or wait for the new car market to return, sending trade inns back in to the market.