Record price rises in the used car market over the past two
months have now levelled out, data company CAP reported.
Used car prices have returned to the levels seen in November
2008, after falling sharply over the course of last year, before
undergoing an “unprecedented upturn” in the first four months of
this year, CAP said.
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“One of the main drivers for stronger used values this year has
been a shortage of used car stock, caused by a combination of few
part-exchanges due to the slump in new car sales, lower production
leading to fewer late plate cars and the extension of some leasing
contracts keeping fleet cars out of the market,” the data company
observed.
“More volume is, however, expected to enter the market during
the next few weeks as confidence among disposers continues to
grow.”
The demand for stock has fallen off since the end of Q1,
however, with conversion rates for leasing companies dropping from
95.4 percent some weeks ago – an all-time high – to 86.6 percent in
April, although this figure is still 14 percent higher than at this
time last year.
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By GlobalData
