Carsite predicts fall in values for less fuel-efficient cars
Despite current high prices in the used vehicle sector, Carsite.co.uk is warning that there could be another round of price drops for thirsty second-hand 4x4s as petrol prices head toward a record 120p per litre – spurred by a weak pound and the Budget’s 3p fuel duty rise.
The last downturn, during the fuel price surge in 2008, stripped thousands in value from used off-roaders and large family cars with many owners unable to sell their vehicle on.
Second-hand 4×4 models that quickly lost value in the 2008 price falls – and stand to fall again in the current market – include the Range Rover Sport, Audi Q7 and BMW X5. Carsite's data shows that almost £6,000 – or around 10% – was wiped from the CAP trade value of both the Range Rover Sport and BMW X5 in just six months.
The company says it believes the additional financial burden placed on drivers by the recent fuel price spike could trigger another drop in buyer confidence for large petrol-powered cars, removing as much as 10% of value from the least economical used models.
This follows the recent warning by the AA over rising fuel prices. Between early February and March the AA reported a 17% surge in the wholesale price of petrol and a weaker pound continues to put upward pressure on fuel costs.
Alistair Jeff, sales director at Carsite.co.uk, commented: 'With record fuel prices potentially sustaining at these high levels we could see a repeat of 2008’s consumer reaction that saw dwindling values in the large family car market. 4×4 prices remain high in the used market for the moment, but these values could soon be perceived as overinflated.’For more of the latest industry news, click here.