Nearly new savings blow

By Ross Pinnock

09th November 2006

A drop in the number of vehicle registrations is beginning to put the squeeze on some of the fantastic savings traditionally available on nearly new cars.

Fewer recent-plate, pre-owned models are coming on to the market, according to data specialist Experian. And its figures show that, as a result, purchases of motors less than a year old fell significantly between April and June. The 8.1 per cent year-on-year drop is being blamed on plummeting new car sales figures.

Rob Whalley, managing director of the data provider’s automotive division, ex-plained: “Fewer new cars are transferring into the used market, and demand for nearly new vehicles has increased as a result. That, in turn, is forcing residual prices for these more recent examples to go up, and may have deterred potential buyers who have been looking for a bargain.”

He warned that the downward trend is likely to continue until the new car market strengthens again. The situation has had a far-reaching knock-on effect for customers on a tighter budget, too. The slump has prompted a rise in the number of six to nine-year-old cars changing hands, making it the only age group during the second quarter of 2006 to register an increase in sales. However, some sectors are experiencing an upturn in demand. Experian says the number of nearly new SUVs and people carriers which were bought between April and June rose by 6.9 per cent and 10.1 per cent respectively compared with the same period last year.