The UK new car market will fall by around 3.5 per cent next year to around 2.6 million cars, predicts Glass’s. However, while the figure looks disappointing in isolation, the vehicle data provider points out that this will still be higher than any year in the last decade except 2016.
The falling value of the pound is likely to see monthly PCP new car payments rise in 2017, predicts Glass’s. The vehicle data specialist says that manufacturers importing their vehicles into the UK will need to recoup margins somewhere and that PCP payments are the least unpalatable choice.
The E46 BMW M3 is Glass’s Used Car Hero for September, providing a driving experience to rival almost any supercar in a family-friendly package. Andy Cutler, forecast values editor, said: “This generation of M3 was recognised as very special from the moment it went on sale in 2000 and is fast becoming recognised as a classic.
Citroen’s popular Berlingo, a mainstay of many fleets that has been around since 1996, is Glass’s Used Van Hero for September. Each month, Glass’s commercial vehicle editors hold a meeting to name the current Used Van Hero in the UK market – the model they believe offers outstanding value, quality and ability.
Fleets “hanging onto” cars and vans in an attempt to achieve unrealistic and inflated valuations are causing distortions in the used car and van markets, say Glass’s. Reluctance to sell below these guide prices, and continually resubmitting vehicles for sale at the same or other auctions, creates a range of problems, said Rupert Pontin, director of valuations. He explained: “Lately, we are going through a phase where we see the same cars and vans presented at auction time and again – and our feedback says that failure to reach book values is the reason.
Retrofit add-ons like big bore exhausts, aftermarket alloys and tinted glass can put off potential used car buyers and destroy values, says Glass’s. Andy Cutler, forecast values editor, explained that these non-manufacturer options suggested that the previous owner was a boy racer and the car would have been driven hard.
The UK’s decision to Brexit probably won’t materially start to affect the UK used car market until the fourth quarter of 2016, say Glass’s.
Valuations experts Glass’s have named the top five optional extras that add value when it comes to selling your car. Rupert Pontin, director of valuations, said that few options increased the value of a vehicle or made it easier to move on when it resold but that there were some exceptions.
Potential buyers of higher value used cars appear to be holding back until the outcome of the UK’s referendum on its membership of the European Union is known, according to vehicle data provider, Glass’s. The company is increasingly hearing anecdotal evidence from dealers that cars priced over £15,000 are struggling to sell; it suggests the potential withdrawal of the UK from the EU could be the cause.
The used car market is starting to reach the long-predicted tipping point into oversupply – with values coming under pressure as a result, reports Glass’s. Rupert Pontin, head of valuations, said that the volume of vehicles at auction had already increased by 3.7 per cent in 2016 and that a wide range of models were starting to fall in value as a result.
Some late-plate Defenders are selling in excess of list price as the end of production leaves Land Rover aficionados to seek out the best used examples available, according to Glass’s. Demand is highest for the XS Station Wagon, fitted with half-leather and air conditioning, with prices in line with Glass’s top condition values and often beating them in closed sales.
“It is encouraging to see that new car registrations were up an impressive 5.3 per cent in March following demand for the new 16-plate change” said Sue Robinson, Director of the National Franchised Dealers Association (NFDA) which represents franchised car and commercial vehicle retailers across the UK, commenting on the SMMT’s new car registration figures.
The top five most simple-to-avoid used car turn-offs have been released by the editors of Glass’s Guide.
The advice is aimed at private sellers who may be wiping hundreds of pounds off the value of their cars by failing to take a few simple steps before they put them up for sale.
David Hill has been appointed to the role of commercial vehicle editor to further strengthen the valuations team at Glass’s.
He has more than 30 years’ experience in the motor industry, being part of the sales department at dealerships selling LCVs and HGVs for manufacturers including Ford, Renault, LDV, and Isuzu Trucks. He was also senior editor of CAP Red Book and, most recently, worked for CDL on data products.
Many younger buyers are viewing cars in a fundamentally different manner to their forebears in a way that could eventually lead to significant changes in the design and sale of cars, says Glass’s.
Generation Y and those younger are learning to drive later, driving less when they do learn and might not see a car as a key to personal freedom in the traditional sense.