Motor Trade Insurance

Trade Values For Used Cars Falls In July 2019

August 14, 2019 by Logan Biggs

Motor traders will be aware that business is tough at the moment and has been for some time. It can prove difficult to move cars off the forecourt within a reasonable timescale and this could impact on the bottom line.

According to cap hpi, the trade value on used cars has fallen by an average of 2.2% in July 2019 for a 3 year 60,000 mile vehicle. In the last 5 years the average fall in such values in July has been 1% so the latest figure is somewhat concerning.

In June 2019, there was an average fall of 3.1%, in May 2019 the figure was a drop of 2.3%, in April 2019 the drop was 0.9%, in March 2019 the fall was 0.6%, in February 2019 the drop was 0.7% and in January 2019 the fall was 1.7%.

The trade value of used diesel cars has fallen by a little more than petrol fuelled used cars. However, there is still a good demand for used diesel cars.

It is interesting that it is second hand luxury and large executive cars that have witnessed the largest drop in trade values. Such vehicles have seen falls averaging in excess of 3%. The type of car suffering the lowest drop in used car value was the convertible with an average fall of 0.8% closely followed by the supercar with an average fall in used car values by 0.9%.

Who knows what the future holds in respect of used car trade values as there is so much uncertainty in the motor trade industry. Presumably, August will be a quiet month due in part to it being the holiday season so people are focusing on enjoying a simmer family holiday as opposed to changing their motor vehicle.

The motor trade industry is a significant contributor to the “government’s coffers” so it is important that the industry performs at a satisfactory level both now and in the future. Let us hope that the industry has a turnaround in fortunes in the coming months that would be welcomed by the likes of motor traders. We will continue to keep our readers up to date with interesting statistics relating to the motor trade industry.

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