Used car prices plummet 30 | 05 | 2011
IF YOU'RE IN THE market for a replacement used car, now is most definitely the time to pop along to you're nearest dealership. Why? Because second-hand car prices have slumped by up to 8% in the last month.
According to the trade, the average drop of 4.5% between April and May is the largest monthly fall in "several years", but some car prices have plummeted by even more. Shop wisely and you can buy a three-year-old Ford Focus for around £5800, down £500 and the equivalent of 8% off.
The bigger Nissan Qashqai — again three-years-old — can now be picked up for £9650, according to the price guide CAP, which is £700 or 6.8% down from its price a month ago.
At the heart of the drop in prices is the glut of stock coming on to the market as motorists have been selling cars after fuel price rises have made running a car too expensive, particularly if it is a second car.
Of course, there are cars which have benefitted. While a three-year-old Ford Focus has fallen £500 to just £5800, a more economical Ford Fiesta of the same age is now worth more — £5900 — after falling by just £250 in a month.
A diesel BMW 318 model, also three-years-old, has fallen by £625 to £9925, which is a fall of under 6% compared to bigger price drops for thirstier rivals.
"There's a build-up of vehicles at auction houses not moving and many dealer groups and supermarkets are overstocked," Tim Bearder, of CAP's Black Book guide, explained.
Selling privately is still the recommended method to get the best possible price but involves the most time and effort.
Selling through a dealer or part exchanging a car often means a lower price but is more instant while going via an online site means getting an offer quickly but usually for even less.
The bright spot for those selling their cars in part exchange is that there are also major deals to be had on buying new cars.
CLICK HERE to hear Scotcars' Alan Douglas on Radio Scotland (Monday, May 30) talking about used car prices (scroll through to 42mins 50secs)
Keep up-to-date with all the latest news by following us on twitter.com/scotcars
Jamie Edwardes