CAP reported a “steady” used car market in September with average values dipping 0.7% at the 3-year, 60,000 mile point. But it warned that record sales of PCPs could dent values in the future as supply exceeded demand.
Derren Martin, senior editor, CAP Black Book said: “The used car retail market remained buoyant in September. “Although some pressure was reported as dealers moved buyers from used to new thanks to record low deposit and attractive monthly payments, and in order to hit their challenging new car targets set by manufacturers.
“A number of large dealer groups are reporting PCP penetration as high as 95% on new car sales. Longer term, if this trend increases, there could be additional pressure on used values as the volume of cars increase and used car demand declines.”
CAP said used price drops are likely to accelerate over the coming months due to increasing volumes and slower seasonal demand. Martin said: “What happened throughout October, November and December last year were value drops at on average 2.4% a month, the highest drops being during November, resulting in an average 3.1% reduction in values for December’s monthly Black Book.”
Convertibles and coupe cabriolets were the most heavily affected by reductions in what buyers were prepared to pay. The size of the drop is earlier and larger than in recent years, with average values down by 3 to 4%, a far higher drop than all other sectors.
