Used car prices are set to come under increased pressure in 2015.
That’s the view of Glass’s which said next year will be the most significant since the recession.
Rupert Pontin, head of valuations, said the year would get off to a “reasonably strong” start but the General Election, likely further austerity measures and the first interest rate rises will dampen demand for used cars
Pontin said that these events affecting demand were likely to be accompanied by an increase in supply.
“Over the last few months, we have seen supply increase by between 1.0-1.5% every month, which is a big change. This is set to continue during the rest of the year, having an overall downward effect on prices.”
Pontin said that 2015 would be significant because it would mark a definite shift from the used car market patterns that had been seen since the recession ended.
“For a long time, we have been in a low-supply situation against a gradually improving macroeconomic backdrop but that cycle has started to come to an end in recent months and that change will characterise 2015.
“Our longer term forecast is that all of these factors will continue to take even greater effect in 2016, with even more pressure on prices through reduced demand and increased supply.”
Pontin said new car sales would remain strong as carmakers target the UK for sales to counter weak markets in Europe.
“However, later in the year, we believe that it is likely that the deposit levels required for these finance deals will start to fall in response to macroeconomic effects.”
