2008 used price crash

Time 13 years ago

2008 price crash confirmedUSED car values crashed by a massive 21 per cent during 2008, reports vehicle auction house Manheim.

This works out to be an average monetary hit of £1515 for car dealers.

December’s plunging values, where 3.1 per cent was knocked off November values, rounded off a disastrous year.

2008 saw a similarly shocking fall in new price retained – down from an average 41 per cent after 39 months, to just 33 per cent.

The only bright spot in December was in an unexpected recovery in compact executive and executive models. These say rises of 6 per cent and 2 per cent respectively.

It suggests that such larger-engined vehicles may have finally ‘become too cheap to miss’. Overall auction hall values rising by a surprising 16 per cent also indicate activity could be returning.

Mike Pilkington, MD of Manheim Auctions & Remarketing said: ‘We all know how tough 2008 has been, particularly in the second half, but we continue to sell cars in a market where there is still reasonable demand.

‘Dealers clearly recognise how important income from used car retailing is to the overall welfare of their businesses, and a survey we conducted last month indicated that many are actually stepping up used car activity, rather than cutting back.’

So, what’s the outlook for 2009? ‘Prices are likely to remain at the current low levels for some time to come,’ said Pilkington.

‘The market is extremely fragile presently, and needs a sustained period of stability, supported by the easing of wholesale and retail credit restrictions, before we will see any material signs of recovery.’

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