Used car market remains volatile

Demand for low-mileage vehicles may have stabilised the used car market somewhat, but executive and ex-fleet models are proving less successful.

Martin Keighley of HPI Valuations believes retail demand is continuing to fall and next month's 58 plate arrival won't do much to halt the decline.

Fleet managers are apparently overvaluing their stock, making it increasingly difficult for resellers to shift overpriced and out of condition stock.

Martin Keighley says it is harder than ever to provide an accurate vehicle valuation: "Accurate vehicle valuation hasn't been so difficult for some 15-20 years.

"However, today's market should be looked at as part of a normal cycle rather than an apocalypse."

Vehicles in the proposed higher vehicle excise duty range will be hit hard in the future, with most seeing a decline in value of around five percent, on average.

"Despite the tough market conditions, many dealers continue to trade profitably and though things are likely to get worse before improving, positive shoots of recovery, such as relatively low interest rates, are visible. The situation could be eased by the government though," Martin Keighley admits.

"Doubts remain over the retrospective changes to vehicle excise duty which are adding to the nationwide lack of confidence. Clarification or an alternative plan may help sweep away some uncertainty."