Automatic cars are holding their prices much better in the second hand market than vehicles with manual gearboxes, according to new research.
Autorola, which runs a website re-marketing used cars for the trade, found that automatics suffered less depreciation than cars with manual transmission throughout 2015.
This type of research is useful not only for car buyers seeking new models that will hold their value best on the used car market, but it’s also beneficial for second hand vehicle dealers. It can give an insight into what customers are looking for and the current trends in buying, and can help inform your showroom restocking policy. If you are changing the volume or type of vehicles you stock, always check that you still have the correct levels of motor trade insurance to cover all the cars on your premises.
The Autorola report found that customers buying a new automatic tend to pay around £2,000 to £3,000 more than those opting for a manual, but when they sell them on, they hold their value better.
The report also said that the average price of a used automatic last year was £11,674, but manual vehicles only went for an average of £8,320. The automatic vehicles performed better when it came to sale times, too.
Jon Mitchell, Autorola UK’s sales director, told Car Dealer magazine: “Demand for automatics was consistently high throughout 2015 and supply relatively low compared with manuals which is why prices have been so strong.
“On average, an automatic is in stock three fewer days on the Autorola online sales platform than a manual, which reinforces their current popularity in the trade and ultimately with motorists.”
Autorola’s research shows that the age of the average used car sold through its channel last year was 33 months and it had 22,000 miles on the clock.