It’s going to be a challenging year in the used car market, according to analysts at Cap.
Cap is predicting 2016 will be a tough with more used cars entering the market after record levels of new car registrations in 2015.
Derren Martin, senior editor at cap Black Book said, “Stability in the market will rest on strong retail demand. The record levels of new registrations in 2015 were preceded by three strong years of growth, following the recession.
“It is clear that cheap finance is a key factor in strong consumer demand, and while low interest rates help to fund these deals, strong resale values are vital to maintaining low monthly payments. We are predicting there will be more pressure on used prices during 2016 than there has been over the last 12 months.”
Last year’s record 2.6 million new cars registered was in line with Glass’s prediction 12 months ago and now it says 2016 could see 2.71 million, but adds this sales drive will impact on used values over the next 12 months.