The New Car Market.

The current econmic climate has seen some considerable changes across the UK retail and finance sectors. One of the areas that has been affected the most is the new car market, with car sales down 23% on the same period last year.

What is even more news worthy is the accelerated rate at which new cars are depreciating in value. The recent Annual Cost of Motoring Index from RAC reports that depreciation for new cars is nearly 35% higher than last year. This is not only having an affect on those members of the general public who have recently bought a new car, but it is also having a catastrophic affect on fleet companies and main car manufacturers.

Nearly New and Used Car Market.

If you look round the used car showrooms right now, you may catch yourself thinking how much cheaper nearly new used cars seem right now. I recently saw a 55 plate, 2005 Mercedez-Benz CLK 220CDi, with full leather, 42,000 miles on the clock, Mecedez-Benz owned from new - and with a full Mercedez-Benz service history - for £12,900. The dealership were prepared to negogiate down to a straight £12.000 to secure the deal. This is a lot of car for a vehicle with an original on the road purchase price of £30,385! 

Personal Experience.

I recently bought a 2004 Jaguar X-Type, 2.0 Diesel Sport, with a full Jaguar service history, 45,000 miles on the clock, part leather and Jaguar owned from new - for £6,750. The dealer was asking £7,200.

What came as even more of a suprise was that - not only is my fully comprehansive car insurance very cheap (with only one years no claims bonus top transfer over), but the £230 the dealer knocked off the screen price toward road tax, was only £126.00. Apparently, the X-Type 2.0 Diesel Sport is in the lowest emission category. How good is that?

So what I ended up with is a lovely gleaming black Jaguar X-Type, ideal for the family, comfortable for the kids, with a potential 140 BHP to draw from if I needed it, 45mpg and with luxury galore. What more could I ask for.

Your Purchasing Power.

If you are still not sure at just how much used car dealerships are prepared to negotiate to off-load their stock, Manheim Auctions has just signed a three year solus deal with GMAC Finance for the disposal of all its volutary terminations, repossessions, PCP products. 

With over 9,000 of these vehicles predicted to pass through Manheim Auctions over the next three years - and with the vehicles in a constant state of depreciation due to a biting economy - there is a tremendous opportunity for the man in the street to start picking up quality nearly new used cars at auction houses like Manheim...right from inder the noses of the used car dealers.

Remember, used car dealers are now more than ever, going to be more cautious about the vehicles they buy. The higher the rate of depreciation, the least attractive a car will be to a used car dealer - and that's where people who are looking for a cheaper nearly new car will get more value for money.

Yes, if you buy a car with a high depreciation factor, you will also loose money on the car. However, that is not what you are buying the car for in the first place. You will have purchased a nearly new used car, with all of the creature comforts, that will be reliable and last for a good number of years. Unlike the used car dealer, who is just trying make a profit on the car.

It is also important to note that if you purchased from a car dealer, the price of the car is inflated by anything up to £1,000 on top of the screen price. By taking the bull by the horns and buying your next nearly used car from an auction, the rate of depreciation will be less accelerated.