While sales of convertibles are slowing down in the new car market, values of used drop-tops are on the up.
New data from Glass’s shows residual values for convertibles have been rising for the past seven years.
Between 2013 and 2020, residual values have risen by 7.2 percentage points for models up to two years old.
For drop-tops up to five years old, values are up by 4.6 percentage points while cars eight years and older are up by 5.3.
‘Clearly as volumes in the used market decline, residual values are becoming stronger,’ said Glass’s car editor Jonathan Brown.
‘Moreover, the last 12 months shows a greater level of increase than would normally be expected in this short period suggesting, at least in the used market, there is still demand for convertibles.’
In the 12 months, models up to two years old have increased 1.8 percentage points, up to five years old declined 0.1 percentage points while models over eight years increased 2.5 percentage points, said Glass’s.
The rise in used values are being driven by two factors, said the firm – lockdown and fewer sales of brand new convertibles.
SMMT data shows sales of new convertibles have slumped from 104,000 in 2007 to under 37,000 last year.
Brown added: ‘Coming out of lockdown, logic might suggest the last thing on people’s minds would be buying a convertible. However, lockdown has created a pent-up demand for all things fun and enjoyable, with the need to enjoy the remainder of the summer sun now more desirable than ever.
‘Lockdown has, for some, created a greater feeling of living for today. However, a significant improvement in new convertible registrations is not likely in the short term.’
- Got a beef with your car manufacturer? Love your suppliers? Tell us why in our Car Dealer Power survey here.
- Get the latest news updates in our WhatsApp group. Broadcast only, headlines direct to your phone. Send us a message and ask to join here.
- There’s a fresh new design and exclusive content for Car Dealer! Download issue 149 for free here.