Pre-reg bar­gains hit city car prices

Used val­ues tum­ble due to glut of pre-reg­is­tered small cars Prices fall 10 per cent in two years

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Used val­ues tum­ble due to raft of small cars on fore­courts

PRICES of sec­ond-hand city cars have fallen by more than 10 per cent in the past two years, fol­low­ing a mas­sive in­crease in the num­ber of nearly-new pre-reg­is­tered mod­els avail­able.

The amount of two-and-a-half to three­year-old city cars on the used mar­ket rose by 80 per cent in 2016, fol­low­ing a 35 per cent rise the year be­fore, ac­cord­ing to resid­ual value spe­cial­ist Glass’s.

It has led to an av­er­age drop in value across the sec­tor of five per cent in 2015 and an eight per cent fall last year, mean­ing buy­ers can now pick up a bargain as deal­ers look to shift stock.

Ru­pert Pon­tin, di­rec­tor of val­u­a­tions at Glass’s, said: “There’s pres­sure on that area of the mar­ket, and cheap re­tail cars are around in vol­ume, be­cause mak­ers force the deal­ers to pre-reg­is­ter them.”

City cars are tar­geted due to their lower cost com­pared with larger mod­els and the fact it’s eas­ier to shift smaller, cheaper cars, too. Pon­tin added: “£50,000 will buy five of those, but it might buy one BMW 5 Se­ries. Equally, once you’ve priced up with a sen­si­ble, monthly per­sonal con­tract pur­chase (PCP) fig­ure, it’s go­ing to sell much quicker in the used mar­ket.”

It’s the first sign of sec­ond-hand car prices drop­ping after strong per­for­mances in re­cent months. The Glass’s chief said the com­bi­na­tion of pre-reg­is­ter­ing, plus the re­turn of thou­sands of cars bought on PCPS dur­ing re­cent years of record sales, will push prices down even fur­ther.

“The drop in prices is based around the vol­ume of ve­hi­cles com­ing back into the mar­ket,” Pon­tin added, “but also the fact that pre-reg­is­tered cars have to show a price ad­van­tage over a brand new car, so there’s quite a bit of pres­sure to take prices down­wards.”

“The num­ber of two-and-a-half to three-year-old city cars on the mar­ket rose by 80 per cent in 2016”

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