Pressure on late-plate used car values to impact market
The warning follows a stable first quarter for the year in which the new and used car markets have again defied the wider economy with strong sales and resilient used values.
Black Book Live is now predicting “a gradual erosion of values at most years and for most models” after a long period of strength in three-year-old car values.
CAP says that much now depends on continued strength in retail demand for used cars. Black Book Live notes that the picture remains extremely positive for consumers in 2013, following CAP’s predictions at the start of the year of a “win win situation” for motorists as manufacturers incentivise new car retail sales to help offset their poor performance in the beleaguered Eurozone.
However, Black Book Live senior editor, Derren Martin, assured the market that CAP is not expecting car values to spiral down. He said: ‘While we are sounding some cautionary notes about the ongoing picture for trade values, we do not expect the market to go into free-fall.
‘Values may well drop for the reasons we have identified, but they have not done so for some time. Depreciation is a fact of life and we should not be too downbeat that it is happening again.’