24 Jun, 2024

Used car prices tumble again in December – but will begin to stabilize in 2024 – Car Dealer Magazine

Used car prices in 2024 are likely to begin to stabilize after the dramatic drops seen in the last three months.

Revealing a 2.1% fall in trade used car prices for December, Cap HPI director of valuations Derren Martin gave Car Dealer his predictions for the year ahead.

The December fall means trade used car prices have now dropped 10.5% in the last quarter of 2023.

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Speaking to Car Dealer in an exclusive video interview (above), Martin said the December figures were among the worst on record, but were still a significant improvement on the previous two months.

Martin said: ‘We had a 2.2% drop in 2014 and December tends to be a month where values ​​do drop, but not by this much.

‘So it’s still a reasonable drop, but I’m looking at it more on the positive that it’s been less than it has been over the last two months.

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‘We are seeing this as a stabilization and we do think there’s going to be, now, a gradual improvement – ​​values ​​now look more reasonable.

‘They’re still above where they were prior to those 2021 increases, on average, by about 13%.’

December’s trade values ​​have been boosted by the

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UAE used car prices see sudden sharp increases – will buyers have to delay their plans?

But in general, the availability of these vehicles has come down from other sourcing points as well, they add.

What it means for potential buyers is that they will end up paying 10-30 per cent higher on their model choice than if a similar deal had been made in October or November. Throw in the higher insurance rates they need to pay on their vehicles – many used car vehicle sellers are not offering free insurance perks – and the cost of ownership has jacked up quite a bit.

For the UAE’s secondhand car dealerships, it all adds up to a most unfortunate set of circumstances. “It’s even tougher because we are still uncertain when the shipments will come in,” said Hamid Shah, CEO of The4x$.com dealership network. “When we have that uncertainty on top of the struggle to source vehicles, it makes for a big impact on the used car trade.”

In each of the last two years, sales of pre-owned vehicles in the UAE were on a tear, with many industry sources saying they have not seen a similar demand rush ever. So much so, during the peak phase of 2021-22, prices of used cars that were 6

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