Values of prestige cabriolets fall to all-time low

Values of used prestige-brand cabriolets have fallen to an unprecedented low, according to Glass’s. The publisher of used car dealer ‘bible’, Glass’s Guide, reports that year-old prestige drop-tops are worth up to 24 per cent less than in March 2008, and signals that now could be the ideal time to buy in advance of anticipated price rises in the run up to summer.

Glass’s compared values of one-year-old roadsters (e.g. BMW Z4), upper-medium cabriolets (e.g. Audi A4 Cabriolet), and luxury sports soft-tops (e.g. Jaguar XK Convertible) in March 2008 versus March 2009. Every vehicle suffered additional depreciation of at least 17 per cent. The greatest additional fall in value was for the Mercedes-Benz SLK 280, with a one-year-old example worth 24 per cent less this month than an identical car of the same age in March 2008.

“Values of prestige roadsters and cabriolets have traditionally outperformed those of most other segments, but latterly they have been hit hard by the decline in consumer spending,” explains Richard Crosthwaite, Prestige Car Editor at Glass’s.

“These cars are often seen as a luxury item; not required to meet day-to-day transport needs. Significantly, the availability of these cars on the used market is also now at record levels, thanks to strong growth in registrations over recent years. The fall in demand, coupled with the increase in supply, is a double-whammy that has led to inevitable and dramatic falls in trade values.

“These cars now represent tremendous value for money, but consumers will need to act soon if they are to grab a bargain. Prices are already stabilising, and for many models they will now rise, month-on-month, until July or August as a consequence of an expected modest uplift in demand as the weather improves.”

Crosthwaite says that concerns about emissions and fuel economy have meant the falls in value have been greatest for those cars with larger, less efficient engines.

“The price difference between the prestige drop-tops with lower- and higher-capacity engines has eroded rapidly over recent months. For example, the price difference between a one-year-old Mercedes-Benz SL350 and a SL500 is only £3,425, despite the cost difference when new being nearly £13,000.”

Crosthwaite adds that the value of a prestige-brand convertible or roadster is sensitive to specification, benefiting particularly from the presence of satellite navigation, leather upholstery, heated seats and larger wheels.