Reduced values and increased supply will cause a car market "soft landing" toward the end of 2013, according to car valuation company CAP Automotive, in a similar pattern to 2012.

According to CAP, even values of older, lower-quality cars are not sliding as steeply as usual thanks to retail demand, despite Black Book Live, CAP’s market price monitoring tool, identifying cars over four-and-a-half years old as one of the main areas of increased supply.

Go deeper with GlobalData

Premium Insights

The gold standard of business intelligence.

Find out more

Derren Martin, senior editor of Black Book Live, said: "The window of consumer demand is slowly closing as we move through the final quarter, so dealers who are in the market for stock are exercising more caution around bidding prices at auction."

Conversion rates have fallen from 80% in September to 65% in October, reflecting the increasing volumes of cars, especially, added Martin, "cars that would not be everyone’s first choice to purchase for stock."

These were cars passed over in September, however, according to Martin, "because retail demand remains good for this time of year, dealers are therefore reluctantly buying these cars and absorbing the cost of reconditioning them".

‘Increase in volume‘

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData
Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

CAP described the situation as a "temporary increase in volume," and Martin added there are still two million fewer used cars in the market now compared to before the recession.

Looking ahead, Martin said: "With a soft landing predicted for Quarter Four, this also makes any dramatic increases in values less likely as we enter the New Year. In short, the market remains fairly robust and we foresee no unpleasant shocks in the short to medium term."

CAP has also predicted an end to the cheap car supply in the UK as a result of an uplift in the German car market.