3:43 pm, March 2, 2011
WARMER weather in the coming months will see residual values for convertibles rise significantly, says Glass’s.
According to data from the vehicle valuations experts, on an annual basis convertibles typically retain more of their original value than other segments.
General market models such as the Peugeot 207CC or Mazda MX-5, and premium models like the BMW 3-Series or Audi A4 hold onto an average of 42 per cent and 45 per cent respectively after three years.
In comparison, compact MPVs and upper medium cars retain an average of 33 per cent and 32 per cent of their value after three years, respectively.
As the British weather improves, buyers will once again be tempted by the open-top motoring afforded by a convertible and trade values are set to experience double-digit increases from the start of the year, says the firm.
In January 2010, the average auction price for a general market model was £6,900, but by April 2010, the average price had increased to £8k, representing a 16 per cent rise for the quarter.
The effect was even greater in the premium convertible market, where the average auction price of £12,650 in January 2010 rose to £15,525 by April 2010, representing an increase of 23 per cent over the three months.
Adrian Rushmore, managing editor at Glass’s, said: ‘The roof is set to come off values of convertibles in the coming months and this will apply to both soft- and hard-tops.
‘Whilst manufacturers tend to try to promote the latter as cars for all-year round, general consensus is that the supply and demand patterns on hard-top models are virtually identical to those for soft-tops.’
Demand from customers is expected to be good, so Glass’s is warning dealers to bear in mind that trade prices are set to go into a slow and steady decline after April.
The single biggest monthly drop is most likely to take place between August and September, which will amount to around 10 per cent. Dealers should be mindful of this when trying to shift the remainder of stock later in the year.
