re-sale value of every used car
The gloomier outlook for the UK economy this year looks likely to
have ramifications for the used car market, according to
EurotaxGlass’s, publisher of the Glass’s Guide, a guide for used
vehicle values. EurotaxGlass’s estimates that the average
three-year-old car could soon be worth some £400 less than in
2007.
With retail demand and values both weaker than last year, more
difficult trading conditions for used car dealers are expected this
year.
Go deeper with GlobalData
Access deeper industry intelligence
Experience unmatched clarity with a single platform that combines unique data, AI, and human expertise.
“By the end of 2007 retail demand for used cars had slipped back
to a level that was marginally worse than the expected seasonal
downturn,” explains Adrian Rushmore, managing editor at
EurotaxGlass’s. “The increased cost of borrowing, stagnant house
prices and widespread reports of a UK ‘credit squeeze’ are all
affecting consumers’ disposable income and confidence. These
factors will prevail through much of 2008.”
Some of the impact of a flagging economy may be cushioned by an
expected drop in the supply of used cars.
“New car sales in 2005 were down on the previous two years,
which means that there will potentially be fewer three-year-old
cars arriving in the wholesale market this year,” Rushmore said.
“However, there will still be pressure on used prices because, even
if the supply is slightly less, this is likely to remain too high
in relation to anticipated demand.”
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
