The banger market is booming according to motor trade experts Glass’s, and this despite thousands of car buyers switching to newer models to take advantage of low cost PCP finance deals.
According to Glass’s - whose Guide to Car Values has become the motor trader’s bible over the past eight decades - the number of people trading in for newer models has led to a flood of older cars onto the used cars market. However, rather than leading to oversupply and falling values, Glass’s are reporting the opposite is in fact the case and that prices for older used motors are on the up.
“We are seeing something interesting going on”, said Glass’s head of valuations Rupert Pontin.
“Since the start of 2013, the number of cars over ten-and-a-half years old being sold at auction has increased by around 50%. We believe this is because large numbers of buyers are selling their bangers and signing up to low-cost new and used car PCP deals to get behind the wheel of a newer model.”
“However, instead of this flood of bangers entering the market leading to a collapse in values, they have actually increased quite substantially. The average auction price for a ten-and-a-half year-plus car in January 2013 was £725 but in June of this year, it was £875. Partially this is as a result of improving economic conditions – more people are feeling confident about buying and running a car at the entry level – but also the quality of older cars on sale is improving all the time. We see many bangers going through auction in excellent condition at very reasonable prices and, for many people, they make extremely sensible purchases.
“It is very much a case of ‘The banger is dead. Long live the banger!"
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