Recent figures from Cap HPI have indicated that used car prices fell 1.4 per cent in April 2016, reports AM Online.
The fall is not entirely unexpected, as it has become a seasonal trend over the last three years, caused by pressure from the licence plate change over earlier in the year, pre-registrations and continuing deals on new vehicles across the country.
With competition among car dealerships being so fierce in April, you should be offering extraordinary levels of customer service to ensure that they keep coming back time and time again. Therefore, in addition to your general motor trade insurance, you should also consider good demonstration insurance to provide test drives of new and used vehicles upon request.
However, even some seasonal favourites such as convertibles, have failed to make a mark on April, as Derren Martin, the senior editor of Black Book, explained: “The value of used cars dropped slowly but surely across all sectors during April.
“Even convertibles, which tend to perform well during spring, struggled slightly, particularly those where there was plenty of volume. Seasonality only positively affects values when volumes are on the small side.
“The city car and supermini sectors were two of the heaviest affected by the downturn, largely from volumes of part-exchanges in the market, and pressure from pre-registrations and continued attractive new car offers.”
Nevertheless, Cap HPI saw no evidence of car dealers offloading stock amid the uncertain market conditions, which indicates that demand is still relatively high.