Used car prices 'look set to fall'

Used car prices 'look set to fall'

Prices of used cars have reached their peak and are set to fall from October onwards, according to experts.

A shortage of used-cars meant values had been increasing, but a surge of nearly new models is set to hit the market after the introduction of the new 59-registrations next month, said valuation expert Glass's.

Managing editor at Glass's, Adrian Rushmore, said: "The improvement in prices this year was largely due to the much lower level of used-car supply."

He explained that prices are levelling out now as the "correction is complete", and said the "trade price of a car, plus a dealer margin, now equals the retail price that customers are willing to pay".

Mr Rushmore said prices will start to fall as some dealers make their margins smaller in a bid to attract buyers.

Glass's predicts there will be fewer vehicles coming onto the market compared with previous years, but prices will be affected.

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