VRA Reports Flat Used Car Market

In May, used car prices in the UK dropped further. Individuals buying used vehicles using car finance are avoiding those that have high mileage. In general, consumers have become extremely selective when purchasing used cars.

They do not want a gas guzzler, due to high fuel rates, and they also do not want a car that contributes too much to environmental pollution.

According the Vehicle Remarketing Association (VRA), dealers are now reluctant to purchase used cars at high prices. In just eight weeks recently, used vehicle prices dropped by more than six percent. This has caused dealers to become almost as selective as buyers when it comes to purchasing used vehicles.

Leasing members and dealers have told the VRA that the demand for vehicles with over 100,000 miles is virtually non-existent. This holds true even if the car is in great condition and features all the bells and whistles available.

The only way a dealer will buy one of these vehicles is if it is an extremely good value for the money being spent.

Dealers are having a lot of trouble selling cars that are inefficient in terms of fuel. They are faring much better when it comes to small, fuel-efficient vehicles. This is a reflection of the change in car buyer preference due to the current state of the economy.

 There seems to be no end to the increase in gas prices, so this trend may not change for a while.

Car dealers are carrying a low inventory of used cars. The auto market in general is showing signs of life, based on test drives and rates of sales conversion. However, the VRA expects high-quality new inventory to be in short supply during the rest of 2011.

In addition, as car rental agencies unload older vehicles, consumers will not be purchasing these.