The cost of change

Significant drops in used car values this year have led to some real bargains appearing on dealer forecourts.

Yet consumers need to realise that their own vehicles’ values will have been affected too.

Car buyers can become emotionally attached to their cars and will often have a strong view of what their vehicles are worth. But they should be aware that falls in values affect the whole market, not just dealer stock.

However, consumers are in a stronger position now thanks to the heavier-than-usual rate of depreciation witnessed this year.

The majority of customers will be replacing their car with a younger, more expensive model from dealer forecourts. The newer the car the more cash it will have lost this year, relative to the incoming part-exchange. So while a dealer might offer less for a part-exchange vehicle than the customer might have hoped, the car being bought by the customer will have been hit even harder in cash terms by falling values. Put simply, buyers have never had it so good!