MOTORING website Auto Trader has revealed some brand new statistics concerning the used car market.

The firm has found the average asking price for used cars fell in quarter three 2011 and dipped below £9k for the first time since it began tracking the market in January 2010.

Latest figures from the Auto Trader index show that the average asking price for a used car across the UK in quarter three 2011 was £8,870 – an actual terms decrease of 3.65 per cent, equivalent to £336, from the previous quarter, and the largest quarter-on-quarter decline yet recorded.

All regions experienced a decline, although the sharpest fall (5.83 per cent) was witnessed in the east Midlands while cars held their prices best in the east of England where prices only fell by 0.5 per cent.

The overall average asking price of £8,870 represents an actual terms decline of 2.4 per cent compared to quarter three last year, or 7.0 per cent taking account of inflation.

Tim Peake, director of Auto Trader, said: ‘The most important factor behind the price declines is the change in the dynamics of supply and demand for new and used cars. Since 2007, weaker consumer and business demand has led to year-on-year declines for new car registrations, which has meant fewer good quality vehicles being available for resale one, two and three years later.

‘Dealers are having, therefore, to fight for good quality one-to-three year old stock leading to an increase in trade prices for these vehicles.

‘However a lower overall supply of one-to-three year old vehicles entering the UK Car Parc, combined with consumers holding on to their cars for longer, is increasing the average age of vehicles in the UK and this is being reflected in lower average overall prices, hence we see a reduction in the overall Auto Trader Price Index year-on-year and quarter-on-quarter.’

Retail prices for cars under three years old are actually increasing year-on-year, says Auto Trader. However September this year did see a decline against August, suggesting dealers are not being able to pass the higher trade prices on to consumers.

‘In 2012, the impact of fewer new car registrations will continue to be felt.’

The top five ‘best sellers’ all rose – Vauxhall Astra (four per cent), Ford Fiesta (four per cent), Vauxhall Corsa (two per cent), Ford Focus (five per cent) and Volkswagen Golf (six per cent).

The trend becomes even more acute when examining the newest vehicles, for example, a Vauxhall Astra that is less than a year old was retailing at £11,350 in quarter three 2010 and a year later this has shot up to £12,621 – an 11 per cent (£1,270) increase year-on-year.

Looking ahead to 2012, Auto Trader believes the impact of fewer new car registrations will continue to be felt, especially if consumers who purchased new vehicles under the 2009 Scrappage Incentive Scheme decide against changing their vehicles three years on.

Peake added: ‘Dealers who are winning are positioning themselves as internet car retailers. They understand the new market dynamic. They analyse data to find the cars that consumers want, sourcing stock at prices reflecting today’s retail values, and focus on healthy volume and stock turn – not simply profit per unit. For these retailers there are significant future opportunities.’