Used car values will remain stable between now and October despite fears that excessive stock would drive prices down, CAP has said.
The organisation’s latest Black Book Plus short-term forecast states that price changes moving from September into October will range between -0.5 per cent and +0.5 per cent. Only convertibles were predicted to experience a notable fall in price, with this type of vehicle expected to dip in value by 1.5 per cent.
It goes without saying that monitoring the value of vehicles is integral for any car dealership, put it is not just the sale prices that will be affected; a business’ motor trade insurance could also be impacted. When obtaining a combined motor trade insurance policy to get cover for vehicles kept on site, a business will need to calculate the overall value of its stock – naturally this value will determine the level of cover they need and thus the cost of the policy, so keeping an eye on market values is vital to ensure a firm gets the right level of cover they need.
CAP’s steady forecast for the industry is aided by the fact that the big registration month of September will bring fresh used stock back into the market. This will “boost consumer interest in buying cars and see strong levels of activity all the way through the month and into October,” CAP’s Robert Hester explained.
He added: “The market has changed in recent years and where October was once a weak month for cars in the trade Black Book Plus is forecasting average values by sector moving this time by between -0.5 per cent and +0.5 per cent.”