Mid Monthly Movements – mid-December 2015
Pressure remains on used prices
Trade and retail stock volumes high
Demand continues to drop away
Both buyers and sellers holding off until the New Year
As we enter the middle part of December, the used car market is reacting in line with our expectations.
Volumes in the marketplace remain high – a hangover from the strong registration month of September that generated plenty of part-exchanges, fleet returns and pre-registered vehicles. So, with heavy supply, strong demand is essential or pressure on prices becomes inevitable. As usual in the final weeks of the year, demand has slipped away.
As a result, Black Book Live values have continued their downward trajectory, at a pace similar to that which we have seen since the middle of October.
All volume sectors have been affected, with city cars continuing to feel the pressure the most in percentage terms. This is due to large volumes in the market and pressure from new car pricing and the aforementioned pre-registration activity.
As in November, older SUVs are currently a desirable purchase, for the trade at least. Many are looking to stock older, even beyond 10-years old, 4x4s at reasonable prices as a “just in case” opportunity for if and when the weather turns colder, and retail customers feel they require such a vehicle to get them about in the short-term.
For the majority of the market however, it is likely that prices are going to remain under pressure for the balance of the year. Stability may well return in January, however this will depend on how hard manufacturers persuade franchise dealers to pre-register at the end of December, and whether this quells their demand for used cars for a while. Other factors that may impact are the weather – inclement climate tends to keep retail buyers indoors – and a possible large volume increase from those that have held back in the final quarter when demand and values have fallen.
Black Book Live will continue to track values throughout the festive period and into the New Year.
