Rise in used cars causing price dip

May 9 2012

New findings reveal that a growing number of used cars being added to the second-hand market have helped prices to dip slightly.

According to statistics published by CAP, dealers who have been affected by the high levels of competition due to an increase in trade stock costs earlier this year can now breathe easier.

In spite of the rise in volume of second-hand cars, the group thinks the sector is "not threatened" in the medium term.

"A year ago the increase in volume was much more of a cause for concern because it was largely driven by dealer self-registrations. This was due to severe weakness in the new car market and it meant a sudden and large influx of late plate cars into the market," said Mike Hind at CAP.

"This time more of the March new car sales represented genuine business and the fact that there are around 15,000 fewer 0-12 month old cars advertised for sale at present than a year ago is evidence for that," he added.

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