CAP warns of poor condition used cars

car mechanics

Valuations guide CAP has warned dealer to be wary of high numbers of poor condition used cars in the market.

It said the “disproportionately high” number of poor condition cars means caution should be the watchword in this area of the market.

Black Book Live senior editor Derren Martin said: “This tends to be a feature of the auction market at this time of year, but this year, the volumes are a little higher.

“This also means that there will be a greater carry-over into September to coincide with the influx of cars generated from the new registration plate.

“Given this situation, price expectations will need to be tempered for these poorer condition cars.”

CAP said overall, however the demand for retail used cars in the trade and on the forecourt continues to keep pace with rising supply.

It said late plate values were under greater downward pressure than three-to-four-year-old market sector because of attractive incentives being offer to consumers on new cars.

September is expected to bring more retail car dealers into the auctions than is usual for a new registration month.

“This is because many consumers are choosing to sell their cars via specialist online buying services before buying their new vehicle, rather than trade them in as part of the deal,” it said.

Source: Motor Trader

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