On the Inside > Used Car Market Overview February 2014

On the Inside

Used Car Market Overview February 2014

MyCarCheck.com/Trade is the trade valuations arm of CDL Vehicle Information Services. Based on cutting-edge industry data and feedback from independent and franchised dealers, these monthly bulletins highlight the most significant trends in the UK used car market.

Head of Car Valuations at MyCarCheck.com/Trade, Alan Senior, commented: ''The news that the economy is ahead of the government's forecast is no surprise to the used car trade. Dealers know from the many enquiries from potential buyers that UK consumers are already feeling more confident about 2014.

''The big headache for traders is the pressure to source the right stock to replace sold units. Such a situation can lead to only one thing: values strengthening. It's the same issue we've been banging on about for the past three to four years now: there are just not enough clean, well-maintained examples to meet demand, and this is unlikely to improve for the rest of this year.

''One notable exception is the coupe and cabriolet market, which is unlikely to do quite so well due to changing buying patterns. At this time of year no one expects great results from convertible sales and, although consumer confidence is up, it will take a little more economic stability to bring back buyers to this sector.

''Our research shows that the models most affected are from the premium brands: Audi A4 convertible, A5 coupe and convertible, BMW 3 series coupe and convertible, Z3 and Z4 convertible, BMW 6 series coupe and convertible, Jaguar XK, Mercedes SLK, C Class Sport coupe, CLK, and CL coupe. Elsewhere, Volvo C70 convertibles are notoriously hard to find buyers for and Saab convertibles have to be cheap to create any retail interest.

''While the same lack of retail interest currently applies to the more run-of-the-mill convertibles, such as Peugeot 307 and 308, Renault Megane, Vauxhall Astra and Tigra, it is likely that these buyers will return with sunnier weather. These models have taken such a value hit over the past year, they now look very good value for money and a cheap convertible will always attract attention.

''Many dealers are reluctant to bid guide values on vehicles offered to them by private sellers, unless the service history is rock solid. You can tell by the ever-increasing numbers of stranded vehicles on our motorways that poor maintenance and lack of servicing is taking its toll.

''The value difference of a car with strong service history compared to the same car with an incomplete service book is getting wider. This applies even more so to the premium brands. The technical complexities of modern cars, along with higher component and labour costs, have resulted in the trade being very wary. Dealers are likely to bid on the low side in an attempt to avoid any financial maladies.

MyCarCheck.com/Trade provides buyers and sellers with all the vehicle price data they need: ready to retail, trade, average, retail and Cat D. As a free bonus, it also provides the annual road tax cost and key DVLA information, including the make, model, colour, engine size, body style, fuel type and date of registration.

Simply enter a car, van or motorcycle registration and the vehicle's mileage to get an accurate valuation and additional information in an instant. Once signed up you can check as many vehicles as you like at no extra cost.