Used car prices: Summer slide more severe this year

Prices for the majority of mass market three-year-old cars have been falling at an above average rate in recent months, according to EurotaxGlass’s.

The publisher of Glass’s Guide to Used Car Values has revealed that prices fell by over 3 per cent in both April and May. This drop was followed by a 2.5 per cent decrease in June. The SUV sector has continued to suffer to a greater extent than the wider market, with three- to five-year-old mainstream models being under the greatest pressure.

“A downturn in used car sales activity during the summer months is normal,” comments Adrian Rushmore, Managing Editor at EurotaxGlass’s. “But price movements over recent months have generally been slightly more severe than those of the same period in 2006. Moreover, this year’s dip came earlier than in previous years, and the month-on-month drops have been sustained. Current market information suggests that prices have reduced by around 3 per cent in July, with dealers reporting low levels of customer footfall in their showrooms during the first two weeks of the month.”

Internet converts time wasters to buyers

EurotaxGlass’s reports that there is, however, some cause for dealer optimism. “Despite lower numbers of customers, retailers are taking some comfort from the fact that they are completing sales with a greater percentage of prospective buyers,” Rushmore continues.

“This seems to reflect the ongoing trend for an increasing number of consumers to use the Internet to research their target vehicles before entering a showroom. Rather than fending off tyre kickers, dealers are faced with better informed buyers who have already drawn up a short list of prospective purchases.”