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New look Focus’ residual boost

Car Dealer Magazine by Car Dealer Magazine
April 4, 2008
0
Home News

THE new-look Ford Focus is expected to be worth up to £500 more than the model it replaces when the first examples reach the second-hand market later this year, according to the used car valuation experts at EurotaxGlass’s.

 

List prices for new examples will remain the same as the outgoing Focus – introduced in 2004 – but improved styling and enhanced specification across the range should make the latest-generation model more desirable to used car buyers, suggests EurotaxGlass’s.

 

‘The Ford range is full of big sellers, and there is none bigger than the Focus, which has been the UK’s best-selling car every year since 1999,’ comments Johnathan Brown, Car Editor at EurotaxGlass’s.  

 

‘High sales volumes inevitably put pressure on the residual values of Fords – with so many examples of each car to choose from, buyers are spoilt for choice, and supply generally satisfies demand.

 

‘When the latest Focus hits the forecourts, however, stocks will be limited for the first few months. Prices will hold up fairly well, reflecting the low level of supply and the anticipated jump in demand for what many perceive to be a more attractive car compared to its predecessor.’

 

When the used car market senses that the new model is available in greater numbers, the Focus may revert to type, as Brown explains.  

 

‘An increase in supply is expected to erode the price premium, eventually leaving values only marginally ahead of the previous Focus.’

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