Wednesday, November 04, 2009
Used car prices fall online first at Autoquake.com
The values of used cars are falling and they are dropping faster online than on the forecourt reveals Britain's largest online used car retailer, Autoquake.com.
'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.
The price gap between online retailer Autoquake.com and conventional car dealers is widening. The average price gap between an Autoquake.com vehicle and a car supermarket vehicle is usually 10% and is currently standing at a record 13%.
'As an online retailer, we can react more quickly and follow the movement of the market to ensure consumers get the best value car.' explained Skantze. 'A traditional bricks-and-mortar dealer has money tied up stock and can't just change the windscreen sticker prices of its cars overnight. At Autoquake.com, we can.'
Used car values look set to fall further between now and the end of the year. Glass's, the leading trade price guide, expects prices to drop by between two and four per cent by the start of 2010.
'These lower prices won't last forever,' warns Skantze. 'Early winter is usually a quiet time for the used car market, we expect to see values stabilise or even rise slightly come the New Year. So for anyone who has been put off shopping for a used car because of rising prices, now is the time to buy.'
DATED: 04.11.09
FEED: AW
