More than eight out of 10 used car dealers (84%) anticipate a decline in used car prices and values this year, according to Startline research.
The March Startline Used Car Tracker suggests 20% think the rate of the price fall will accelerate, 28% believe it will continue at the current speed and 36% think the price drop will be less severe.
Paul Burgess, CEO at Startline Motor Finance, said: “Over the last year, used car prices and values have fallen by about a fifth caused by factors such as gradually increasing stock supply and reduced consumer demand.
“The general view on this has been that prices and values were inflated to a very high peak and that some form of readjustment was always going to come. The question for dealers is how far the market is going to ultimately fall?
“Our findings are that dealers generally don’t think the realignment is over. Although there is some disagreement over how far things could yet fall, the majority view is that the worst is over, which we agree is the most likely situation.”
Startline’s Used Car Tracker suggests 16% of dealers think that the situation has stabilized and another 16% believe that prices and values will rise.
Burgess added: “Interestingly, 8% of the dealers we questioned also think that the market is returning to something more like before the pandemic and we broadly agree with that sentiment.
“We are probably seeing the return of something that would in historical terms be considered much closer to a normally operating used car market with prices becoming more affordable.”