The car market can appear confusing sometimes.
The other day, I read that everyone is switching to brand-new cars on easy-peasy PCP payments while, at the same time, everyone else is buying more bangers than ever. That’s the car buying world according to the car price peeps at Glass’s - and they may well be right.
So on the one hand, there are car buyers switching out of bangers into new cars because it’s easy, while on the other hand, the banger market, such as it is, is booming. This is unusual.
What usually happens is the resultant oversupply of old rubbish either depresses prices or clogs up salvage yards. However, Glass’s has the stats to back up its claims. Apparently, the average auction price for a decade-old car in January 2013 was £725, but in June this year it was £875. So enough new buyers are entering the market to soak up the extra volume, but why?