Glass’s has marked down the values of used cars by 3% in August in a saturated market. It is the fourth consecutive month that the guide has marked down prices by 3%.
Glass’s said the market was seeing higher stock levels at dealerships and auction houses and this was impacting adversely on values. “The wholesale arena continues to see higher levels of stock compared to the equivalent period 2014.
“During market visits to both dealer and auction sites, the seven Glass Car Editors have seen some locations battling with space to park vehicles once more,” said Glass’s chief car editor Steve Jackson.
Jackson said that buyers could afford to be more selective with the greater choice of vehicles available. “Poor condition and lower specification cars are under price pressure,” he said.
Glass’s issued a warning on used valuations caused by a forced used car market and the implications for values in 2016. “Manufacturers continue to push hard to achieve market share in a growth market, and are incentivising the franchised network to achieve stretching registration objectives.
“With five registration months left to the end of the year, the pressure is still on for new vehicle growth. Once again caution is advised, as the market must look ahead at the impact of this growth on values of used vehicles in the near future.
“Today’s new vehicle registrations are tomorrow’s used vehicle stock, and an increase in used vehicle stock availability undoubtedly will affect used vehicle values,” he said.
