As the summer arrives, mycarcheck.com/trade is reporting surprisingly low values for cabriolet models, particularly MINIs. The trade valuation arm of CDL Vehicle Information Services has also highlighted a boost in volumes of three year old models coming to the used market at the end of their personal contract plans (PCPs).
“June is traditionally a fairly quiet month for used car buying, with the exception of the soft-top market, which is normally at its best as spring turns to summer,” explained Alan Senior, head of car valuations at mycarcheck.com/trade. “However, dealers are telling us that this business is very slow, particularly on MINI cabriolets where oversupply means they have to be priced low to sell.
“Used values in general are under some pressure at the moment due to a number of factors tipping the supply balance. In particular, the recession, PCP schemes and incentives on new cars.
“We are now entering a period where there are more three year old cars coming into the supply chain again, largely thanks to the success of PCPs. UK new car buyers have really embraced it and, as the general cost of living spirals, many believe it is now the only practical way to drive a new car.
“Car manufacturers, finance houses and dealers are still trying to work out the full implications of the shift towards PCP. The most obvious impact has been a marked drop in the values of late registered vehicles. List price is not such an issue any more. It is all about low monthly payments.
“PCP deals on used cars is definitely another trend to watch,” he concluded.
