The value of used cars in Britain could drop significantly because of combination of over supply and longer vehicle life-spans, which could also render some older models worthless, according to Rob Barr from Manheim Auctions .
Speaking to delegates at MotorTrader’s Spring Forum, Mr Barr told how more used cars are being pushed towards the consumer, warning that the past six years had seen an extra 32 million second hand vehicles had join the market .
"What are we going to do with these cars? Line them up bumper to bumper? That's 1,200 miles, or three times round the M25," he said.
"We are moving more cars than there are people or space for."
Barr suggested that new methods of speeding up sales ‘churn’ were needed by the trade as a way of sustaining current demand, but added that he feared over supply could lead to market saturation.
According to him the average D sector model was worth £500 after ten years and that many used models with mileage of around 100,000 miles plus were still fit for purpose, but could end up having no inherent sales value .
Barr added that this trend was having an impact on younger vehicle residuals.
"One year old Mondeos and Vectras are incredibly good value. Why would I want to pay £15,000 when I can buy one for £11,000?" he concluded.
