Second Hand Car Prices Keep Dropping

The credit crisis, soaring fuel prices and huge tax increases imposed by the government

in the name of environmental protection have had a significant and detrimental impact on the price of second hand cars, wiping millions of euro of the value of the car market over the last 12 months.

It is already clear that vehicles that emit the most CO2 are the ones seeing the largest comparative percentage falls in value. The 44 market in particular is expected to decline over the next year as potential buyers shift their desires to vehicles that are more economic, and perhaps a lot smaller.

Because of the governments current determination to heavily tax cars based purely on their CO2 emissions, even relatively efficient cars with bigger engines are falling victim to the higher tax increases. This means that only small cars are likely to maintain their values, as they are considered to be easier to sell on in the current economic climate.

The really big losers in the rapidly declining values of second hand vehicles are those who have recently bought brand new, big engine cars that are bad for the environment, the value of their vehicle dropped the instant they put their arse on the seat and drove it off the forecourt, and now re sale prices have fallen further than mere depreciation following the governments announcement of the tax increases and the lack of credit in the market place.

However, with falling prices the average car dealer in the Ireland is expected to see an impact on their income. Even though sale prices have dropped, and so in turn has the cost of acquiring those cars. Car dealers will be able to assess the CO2 emissions of any vehicle and its tax liability before buying them. This will allow them to maintain the profit margin between the cars they accept as trade in or buy from other car dealers, and the price at which they sell them.

But the real advantage will go to those who are looking for a second hand bargains and have cash to spend. They are going to be able to negotiate down an already low price, and could bag themselves a real bargain. Those who are relatively well off can acquire a nearly new 44 for a lot less than they would have paid at this time last year.

by: Wolfe Tone

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