Used car values to rise in coming weeks, predicts CAP
The firm says that the used car market is already showing early signs of strength with demand growing fast for the best quality cars, according to CAP’s real-time Black Book Live guide.
Derren Martin, senior editor of Black Book Live, said: ‘We reported at the end of November that there were signs of dealer stocking activity, ready for the New Year, and we are now seeing the fruits of that. This is because the availability of good condition stock is becoming an issue, which means prices are being pushed up for the most desirable examples.’
But CAP experts also warn that the volume of cars in general, and those in average and poor condition in particular, is growing ahead of expectations.
Martin added: ‘In a market like this, dealers are always faced with difficult choices. Lower quality stock is abundant and affordable, but will attract significant refurbishment costs and take time to prepare for retail. The best cars will inevitably cost more in the first place, so dealers may have to price them at a premium on the forecourt.’
CAP adds that there are also early indications of a growing trade appetite for convertibles. These are now perceived to be at their lowest value point in the annual cycle, so many buyers are looking to build convertible stock before the return of milder weather pushes values back up.