The values of used cars dropped by 1.8 per cent in December, according to data from CAP Black Book.
It said that the fall was in line with the usual seasonal dip but it also predicted a challenging year ahead for the used car sector, because there will be more vehicles on the market due to high numbers of new car registrations.
If you’re selling used cars make sure your motor trade insurance and road risks insurance policies are adequate for you needs. In a market where customers have a lot of choice, the service you provide them will be key to securing a sale and you need to be properly covered.
CAP said that the December figures showed a steady wholesale market although trade sales at auction were down by nine per cent compared to November. But the auction figure was 6.5 per cent higher than in December last year.
CAP Black Book senior editor, Derren Martin, told Car Dealer magazine: “We are predicting there will be more pressure on prices during 2016 than there has been over the last 12 months.
“The seasonal pattern is likely to be similar to that of the last few years: stability for quarter one, steady drops in values for quarters two and three, followed by a heavier decline in the final months of the year.”
The research identified major differences between types of car when it came to depreciation. Three-year-old city cars lost the most value and were worth 15 per cent less than in December 2014, while SUVs were down by just four per cent.
Luxury executive cars actually increased their value year on year. A three-year-old car in this sector is now worth 1.5 per cent more than it was a year ago due to strong demand and short supply on the market.