I know I’ve mentioned it before, but it’s becoming more of an issue for me personally as I’m looking to get a new car this year. The problem being of course is just how much used cars have lost in the previous year or so.
The average three year old motor is now worth £1,750 less than a car of the same age in January 2008 – a big fall I’m sure you’ll agree. There may be some light at the end of the tunnel though, as the experts over at Glass’s Guide say the fall will not be repeated this year. Part of the problem is the slump in new cars being bought – which in turn affects how many are available in the used segment.
Prices are still set to fall faster than usual this year, but how much by remains anyone’s guess. My advice is if you’re in the market to buy without having to trade in, that’s a strong position so go for it. If you do have to trade in at the moment, go for something that is unlikely to depreciate much further, to safeguard against any imminent falls.
martin says
February 4, 2009 at 12:05 pmI’d buy now if i was you before all the car makers hike up their new car prices.Vauxhall and Fords announced price rises this month even on their most popular models of between £500 and £1000. VW looks set to be the next.
This March plate change may be the last chance to bag a bargain as dealers look to rescue this 1st qtr yet at the same time find some half decent used stock for their empty forcourts in the shape of your part exchange. With factories production at a halt simple demand and supply rules will start to follow and the deals could dry up along with the used cars
cool bananas
Martin
Mr Butterscotch says
February 4, 2009 at 6:05 pmHi Martin,
I did indeed see the price hike announcement. My own take on it though is that it’s a bit of a misnomer – if no-one can get credit (and yes, we’re still in the credit crunch) then dealerships will be forced to lower their prices anyway, or at least accept nearest offers.
Used stock remains at extremely low prices, though some say it has bottomed out now.
The demand for new cars hasn’t ever gone away – it’s the credit that has. With manufacturers such as Nissan stockpiling their cars due to the inability to sell, I don’t think the deals are going anywhere too fast… just my two cents.