A spike in nearly-new petrol models causes prices to fall by up to 14% in some cases, while equivalent diesels hold fast
29 November 2019

A large increase in nearly-new petrol cars has sparked a substantial fall in used prices, according to valuation specialist Cazana.

The company, which tracks the used car market, reported that the average value of a sub-12-month, sub-12,000-mile petrol car fell from 76% to 68% of original cost new between October 2018 and 2019. Prices dropped gradually throughout the year, but plummeted to a low of 62% in September.

The fall has been credited to the UK’s rapid swing to petrol cars, along with a spike in pre-registrations and the recent spate of new car price rises in the run-up to Brexit.  

“This is a direct reflection of too many petrol cars coming into the marketplace,” said Rupert Pontin, Cazana’s director of insight, “the sub-12-month, sub-12,000-mile market has been significantly affected by pre-registered vehicles. Those prices needed to be readjusted because the manufacturers decided that the UK wanted lots of petrol cars, and they didn’t sell as many as they expected to. There are about 20% more cars in that marketplace [than a year ago] and the average new cost of those vehicles has gone up.”

Pontin added that the introduction of WLTP in September 2018 had also contributed to the recent fall in used petrol values. He claimed that the rise in registrations during the derogation period – where manufacturers were permitted to sell a portion of non-WLTP-compliant vehicles built before 1 June 2018 – had seen significant numbers poured into the market.  

“WLTP has had an impact, because these are petrol cars that had to be priced and sold before the derogation period ran out, and they’re disappearing into the used car market as pre-registered cars,” he said.  

Despite the dramatic reduction in new diesel car sales – they’re down 28.3% year-to-date – and speculation that used examples had dropped in value, nearly-new models are worth almost exactly as much as they were a year ago.

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Cazana’s figures show that, on average, sub-12-month, sub-12,000-mile diesels retained 71% of what they cost new in October 2018, and 70% a year later. At the beginning of the period, nearly-new diesels were 5% below equivalent petrols, but they were 2% higher in October this year. 

Jack Carfrae

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Comments
16

29 November 2019

Wow. Who would think when the supply goes up, and the demand doesnt, price goes down!

29 November 2019

 Yeah, he started it!, and look at us now, we can't decide what is best, we have an election, and business is running like a headless Chicken.......

29 November 2019
Peter Cavellini wrote:

 Yeah, he started it!, and look at us now, we can't decide what is best, we have an election, and business is running like a headless Chicken.......

 

You used to be indecisive, but now you're not so sure...speak for yourself and don't judge everyone else by your own LOW standards/NIL acheivements. "business is running like a headless Chicken"...means what EXACTLY...more tommyrot and tripe from the 2nd most ignorant fool after xxxx.

FM8

29 November 2019
Takeitslowly wrote:

Peter Cavellini wrote:

 Yeah, he started it!, and look at us now, we can't decide what is best, we have an election, and business is running like a headless Chicken.......

 

You used to be indecisive, but now you're not so sure...speak for yourself and don't judge everyone else by your own LOW standards/NIL acheivements. "business is running like a headless Chicken"...means what EXACTLY...more tommyrot and tripe from the 2nd most ignorant fool after xxxx.

Tommyrot? What's that all about?

29 November 2019
Tommyrot is good.

FM8

29 November 2019
eseaton wrote:

Tommyrot is good.

Maybe, but who uses language like that these days? In his previous iteration as FMS he threatened to set the bobby's on me? I'd love to to meet him in real life. I've offered, he bottled it. Ultimate keyboard warrior.

29 November 2019

Whilst I agree that the idiots who represent this nation couldn't organise a piss up in a brewery, the manufacturers must take some of the blame for not having contingecy plans for any eventuality. Many of them are businesses the size of small countries, yet they bleat about uncertainty. 

29 November 2019

 . . .  that I recently bought a used 18-month old Diesel for about 50% of what it cost its first owner. 

Low emissions, too - just likely to be chargeable in the expanded ULEZ from 2021, but that's no biggie for me.

29 November 2019

Cheaper petrol cars - what's not to like  :)

29 November 2019

I can't make head nor tail of what the article is trying to say. Used examples of diesel cars have dropped in value but nearly new are the same as they were a year ago.

Can someone PLEASE define used and nearly new? Autocar Nearly New articles mention cars that are 6yr old.

And used car prices are dropping because the market was flooded with new cars. But, but...  but just the other day SMMT are telling us output keeps falling, we're not buying cars and the world is about to crash all because of Brexit.

I'm so confused.

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