Motorists face losing hundreds as dealerships bring in ‘buying bans’ and second-hand cars plummet in value

MOTORISTS are at risk of losing hundreds of pounds as the value of second-hand vehicles plummets.

A drop-off in demand, coupled with an increase in second-hand supply, have seen a number of models decline in value, despite market prices being at record highs.

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Used car prices have fallen 13.7% since April, according to figures from trade pride experts Cap HPI.

That figure looks set to fall a further 4% by November.

Phil Nothard, insight director at Cox Automotive, explained that only vehicles priced below £6,000 were having success.

"There’s nervousness about how far those [used car] prices will continue to come down," Nothard told Car Dealer.

The motors whizz added that some dealers were on 'buying bans' - leaving them unable to replenish after selling vehicles.

"We are going through this change point," he continued.

"But I think we’ve got to be careful how we reflect what is going on. 

"Now, the prices do need to come down.

"Some of these prices are still significantly higher than they were pre pandemic.

"But Cap HPI is quoting 4.2% fall at the three year benchmark for October and you know that will create waves across the sector which then creates nervousness. It’ll create caution.

"There’ll be dealers that will be on buying bans or restricted buying and that will be creating a problem."

Nothard said that the knock on effect from fewer cars sold during the Covid-19 pandemic will continue sting the sector in 2024.

"I think it’s going to be painful," Nothard concluded.

"I think it’ll be painful until at least the end of this month and then we’ll have to see what happens going into December."

It comes as one car salesman lifted the lid on the best second hand cars to get you extra cash.

Brandon from Car Questions Answered took to YouTube to explain how second-hand dealers make whopping profits by acquiring stock at bargain rates.