Used car prices could rise further as second hand supply remains low

USED vehicle prices may rise in September due to a shortage of vehicles in the market if demand picks up.


That’s the view of Alex Wright, managing director of Shoreham Vehicle Auctions, who says that the used market is stable, but quiet at the moment with both buyers and sellers very careful about pricing vehicles correctly and also making sure they buy vehicles they know they can sell.


It means they are asking more questions, as buying the wrong vehicles and then not selling them quickly can have a very negative impact on a dealer’s cashflow.


Anything with a rarity factor is doing well, says Wright, such as 17-seat Ford Transit minibuses which are making up to £600 or £700 over book. Mercedes Sprinters are also doing well, with some selling for almost 20% aboveCAP.


Both supply and demand may be low, but if September picks up like it does historically, there will be a shortage of vehicles, he forecasted.


‘Supply is not likely to pick up, which means prices will start to increase, putting traders and retailers in the age old dilemma of having to pay more money for vehicles, without any guarantee they are going to sell quickly,’ said Wright.

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