Sunday, 20 March 2011

Auction Values Continue To Rise

For the first few months of this year, the trade guides have reported many increases on trade values. Glass's reflecting high demand for 4x4, and late, low mileage stock of virtually all desirable models.
This has been evident in auction prices, and will continue to be so - despite book values increasing, prices achieved continue to be close to, or over guide values. The disparity between the two main guides - Glass and CAP, underlines the increased potential for error when buying at auction.
Meanwhile, modest new car registrations are likely to lead to shortages in supply of good quality used stock, and convertibles are about to start their annual value increase as dealers prepare for higher demand with the promise of better weather.
BCA recently reported that average values achieved in the nearly new sector had reached a record level.
Interestingly, though, the increases still do not seem to be filtering through to the retail market. Massive price competition, fuelled by "part-time traders" selling the odd car off their driveways or local streets means that smaller dealers are having to be extremely competitive on price.
Buying a car from a reputable dealer who prepares cars properly and offers a quality warranty represents fantastic value at the moment. As for buying at auction, it's as risky as ever. There are still plenty of good vehicles to be found, but as always, solid research is imperative. Check retail prices thoroughly, and go through the vehicle checks like a ritual!

1 comment:

  1. Buying car in an auction site is really a challenge for it requires great knowledge to the car you are about to buy and a keen eye for you to spot some defects that will be a problem to you someday.

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