11:57 pm, August 10, 2011
OVERALL average used car prices on Motors.co.uk are now back in line with January 2011’s average.
January’s average stood £10,746, matching the picture seen at auction, where prices are broadly flat or dropping slightly.
However asking prices for smaller, more economical cars such as Fiesta, Astra, Corsa, Golf and Polo, are higher than in January 2011 with bigger, and more expensive cars – in particular BMW 3 and 5 series – seeing asking prices drop.
On vehicles with mileage of between 10,001 and 20,000, the top five small models with the highest price increases in August 2011 are:
· Vauxhall Astra – 6.5 per cent
· Volkswagen Golf – 3.9 per cent
· Volkswagen Polo – 3.4 per cent
· BMW 1 Series – three per cent
· Audi A3 – two per cent
In contrast, there are a number of older, high mileage models which have lower asking prices relative to January 2011, says the firm.
Anecdotal evidence suggests that the economic stagnation and the high price of fuel has resulted in consumers requiring greater cash incentives to purchase these larger, more expensive to run vehicles.
Dermot Kelleher, head of research at Morors.co.uk said: ‘With a drop in the volume of transactions and a lack of part-exchanges in the market, we know that dealers are finding it difficult to source suitable used stock – especially good condition, smaller-engine vehicles with sensible mileages that are in demand at the moment, as the trend for motorists to downsize gathers momentum.
;Clearly, dealers need to adjust their stocking parameters to ensure they have the right mix of product. However, if dealers can get their stocking right, the growth in the demand for smaller, more fuel efficient cars gives them the opportunity to hold their prices, which look set to continue rising, as supply tightens.’
