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Used Car Prices 'Likely To Remain Low For Some Time'

16:36 Mon 24th May 2010 |

Motorists who desperately need to replace their old banger as soon as possible - but are currently feeling the pinch - may be able to bag a second-hand bargain, if new figures are anything to go by.

A leading car auction company has announced average wholesale prices for used cars have decreased by around 21 per cent. The managing director of the firm said dropping sales would not necessarily mean dealers would reduce their stock and buyers would have less choice.

"Dealers clearly recognise how important income from used car retailing is ... and a survey we conducted last month indicated that many are actually stepping up used car activity," he explained.

He also predicted prices of second-hand vehicles would stay low for some time to come. A survey from the company revealed two-thirds of dealers have seen used car sales fall in recent years.

The survey of the general public at auctions has highlighted a significant shift in the perception of the vehicle auction environment over recent years. Value for money, convenience and a hassle-free environment are now key factors that convince people looking for a used car bargain to go to an auction.

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