11:22 am, September 8, 2008
VALUES of some three-year-old cars have crashed by a third – in just a year.
And overall, reports HPI, prices of 36-month models are down by over 23 per cent in the last 12 months.
Year-old models are also dramatically down, by nearly 18 per cent.
What’s to blame? The economy, says HPI – although the situation isn’t being helped by the Government’s VED road tax plans. That’s why the worst performing sector is petrol 4x4s.
Three-year-old examples have crashed by nearly 38 per cent in a year – and even limiting things to 12-month-old models, falls of over 20 per cent have been recorded.
Also susceptible have been petrol MPVs and executive models.
Contrast this to petrol city cars, which have dropped just 14 per cent for three-year-old models, and 8.6 per cent for year-old models.
In short, as it’s the credit crunch that’s causing the problems, buyers will be continued to led by heads rather than hearts. So sensible, low-consumption models will always do well over style-led cars.
But there are glimmers of light from some dealers. Those selling low-mileage, two- to five-year-old models are doing well, it seems. Relatively low interest rates are also helping – dealer-sourced finance is a growth area at the moment.
And, adds HPI, ‘though executive and ex-fleet models are proving less buoyant, today’s market should be looked at as part of a normal cycle rather than an apocalypse.’
