could You Buy Newer On PCP Or Go For A Cheap Banger?
Thousands of car buyers are switching out of their bangers to newer cars to take advantage of low cost PCP deals, reports motor trade bible Glass’s – however at the same time the banger market will be exploding with values in addition to volumes rising.
Rupert Pontin, head of valuations at Glass’s, said: “We are seeing something interesting going on. Since the start of 2013, the number of cars over 10.5 years old being sold at auction has increased by around 50%. We believe This particular will be because large numbers of buyers are selling their bangers in addition to signing up to low-cost brand new in addition to used car PCP deals to get behind the wheel of a newer design.
“However, instead of This particular flood of bangers entering the market leading to a collapse in values, they have actually increased quite substantially. The average auction cost for a 10.5 year-plus car in January 2013 was £725 however in June of This particular year, in which was £875. Enough brand new buyers are entering the market to soak up the extra volume in addition to the banger market will be actually in excellent health.
“Partially This particular will be as a result of improving economic conditions – more people are feeling confident about buying in addition to running a car at the entry level – however also the quality of older cars on sale will be improving all the time. We see many bangers going through auction in excellent condition at very reasonable prices in addition to, for many people, they make extremely sensible purchases.
“in which will be very much a case of ‘The banger will be dead. Long live the banger!’”
Rupert said in which the question for the medium term was how many more people could opt for a PCP deal on a newer car in addition to whether banger values could continue to improve over time.
“The number of people switching into PCPs does not truly show any sign of slowing down in addition to This particular means in which the volume of older vehicles on the market will continue to grow. At some point, This particular will lead to oversupply in addition to falling values however in which will be quite difficult to predict exactly when.”
by Mr Butterscotch via Car Articles