Used car conundrum from Ford & Vauxhall |
| 23 Nov 2005 |
According to reports, the latest-generation Ford Focus and Vauxhall Astra are depreciating at a much slower rate than their siblings in the sector above - the Ford Mondeo and Vauxhall Vectra. When age, specification and mileage are comparable, the smaller car from the same manufacturer will have a used retail price up to £1,500 higher.
For example, a 2005 '05-plate Ford Focus 2.0 Zetec five-door with 8,000 miles on the odometer would this month typically have a retail price of £11,900, compared to £10,550 for a 2005 '05-plate Ford Mondeo 2.0 Zetec five-door with identical mileage.
There is a similar story with the equivalent models from Vauxhall. For example, a 2005 '05-plate Vauxhall Astra 1.6 Club five-door (after 8,000 miles) currently has a retail price of around £10,100, whereas a 2005 '05-plate Vauxhall Vectra 1.8 Club five-door can be found for £9,600, despite it having a more powerful engine and being the bigger car.
This curious misalignment of residual values occurs largely because the Focus and Astra have been launched more recently, and the availability of used examples is low relative to current retail demand. By contrast, the Mondeo and Vectra are a later stage in their planned lifecycle and, as a consequence, demand has eased back and supply is now comparatively plentiful.
As availability steadily improves, we can expect to see values for the Focus and Astra fall back, comments Adrian Rushmore, Managing Editor. The honeymoon for the latest Astra may be nearing its end, with the used retail price premium over the Vectra having fallen consistently during the past 12 months.
The values of volume-brand upper-medium cars have been improving slowly over the past year, largely as a result of the higher number of diesels entering the used car market at prices significantly higher than their petrol counterparts. However, the comparatively greater popularity and stronger residual value performance of vehicles in the lower-medium sector means cars such as the Mondeo and Vectra will continue to represent impressive value for money for the used car buyer for the foreseeable future, he concludes. |
| This news is supplied by Car News (http://www.car-news.co.uk/) |
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