I’m a used car expert… dealers are ‘slashing prices of their motors’ – how you can bag a bargain
A USED car expert has revealed dealers are “slashing the prices of their motors” and how you can bag yourself a bargain.
In November, used car trade values dropped by 4.2 per cent in November, which followed an identical drop the previous month, according to a Cap HPI report.
However, Auto Trader revealed for the same month, used car retail prices had fallen by a more modest 2.5 per cent.
Used car dealer Phil Johnston, of Spencer Flint Automotive told the Car Dealer Podcast earlier this month retail used car prices were not falling as fast as trade guides suggest.
Auto Trader said in a briefing with Car Dealer there was a “disconnect” between retail and trade values.
The company also said in the briefing retailers were already slashing prices across the board.
A survey in the final weeks of November as well as a pricing webinar on December 1, both carried out by Auto Trader, found 68 per cent of independent dealers were cutting their retail prices while that figure rose to 80 per cent for franchised dealers.
Auto Trader commercial director Ian Plummer said in a Car Dealer Live interview there was currently £37.2million of “underpricing” going on with cars that have a high demand.
He said: “That equates to around £4,200 per retailer… Now more than ever there are opportunities being missed.”
Despite the nervousness among dealers he said the sales of used cars remained strong.
Plummer said: “It is understandable [in December] to see a slowdown in sales numbers compared to the month prior. But actually, when you look at the month a year prior, the numbers are very good.”
He added: “So, pretty good market health, but most importantly for retailers that’s resulting in strong sales numbers.”
Looking ahead to 2024, Plummer predicted an uplift in used car sales to 7.24m, up from 7.17m in 2023.
The news comes after the 10 cars that have seen the largest dip in second-hand value, were revealed, with thousands being slashed off their price.
Some models have seen up to 30 per cent of their value vanish in the past six months.
It appears that the increase in car supply after a covid-related shortage is causing the market to rebalance to pre-pandemic levels.
Meanwhile, another used car expert explained why April was the best time to buy a second-hand vehicle.
Here are the five key questions you need to ask when buying a second-hand car to prevent being ripped off.