Drop In Used Car Prices Favour Car Leasing Rather Than Loans Or HP

Monday, 17. November 2008

CAP who provide vehicle valuation guides based on achieved auction prices have said that they are about to launch a significant downward price review based on the continued drop in prices achieved by fleet sellers in auction. This will have the affect of putting up lease rates unless the leasing companies can counter this with greater bonuses from the manufacturers. And be dismal news for those who either have a car on HP or own their car outright, They suggest that the drop will continue throughout the new year having a negative affect on new and used car sales but making selective leasing more popular as manufacturers and dealers target specific models into which they will throw extra discounts and bonuses. The main competitor to CAP, Glass’s Guide doesn’t see things quite so pessimistically and suggest that the used car market will come back more quickly than CAP suggest. Time to batten down the hatches I think! By Graham Hill