According to UK-based online retailer Autoquake.com used car prices have stated to fall for the first time this year following an unprecedented rise in costs for 11 months.
Its analysts say the value of used cars traditionally starts to fall after the spring, but this year there has been a steady increase in price. However, over the past month the price rises have reversed.
“After months of rising prices, we’re seeing signs that the used car bubble has burst,” said Fredrik Skantze, Autoquake.com’s co-founder. “Values at auction have begun to slide, and our prices are lower than they were a month ago.”
A car which would have retailed for £10,000 on Autoquake.com a month ago is now typically listed at £9,312 – a drop of £688. Vehicles that have seen the sharpest falls over the past month include the Renault Laguna which has seen an average drop of 14.8 per cent or about £532. The Vauxhall Vectra saw a drop of 13.9 per cent or £645. A second hand Saab 9-3 can be had for 11.8 per cent less – a price cut of about £1,151.
The retailer also claims that the price gap between its prices and conventional car dealers is widening.
“As an online retailer, we can react more quickly and follow the movement of the market to ensure consumers get the best value car,” said Skantze. “A traditional bricks-and-mortar dealer has money tied up in stock and can’t just change the windscreen sticker prices of its cars overnight. At Autoquake.com, we can.”