Used Car Prices Tumble
21 July 2007
The Daily Telegraph
SMART buyers are cashing in on tumbling used car prices - and the value equation is only going to get better.
Research by fleet company FleetPartners indicates that Australia's booming new car sales are forcing down prices in the used car market.
"In recent years we have seen residual values slump by around 20 per cent as the volume of new car sales has risen and prices for new vehicles have generally remained steady," FleetPartners chief executive Nick Johnson said.
"Our prediction is for a continued softening in residual values, probably in the order of a further 20 per cent between now and 2011."
The FleetPartners' research estimates a new car bought for $30,000 today will be worth $10,750 in 2010, or 36 per cent of its original price.
A $30,000 car bought in 2004 and sold in 2007 would return about $13,000, or 43 per cent.
Over the long term, falling used car prices could also have ramifications for the new car market, with bargain prices likely to lure some potential buyers away from new vehicles.