There's been a noticeable drop in used car prices in all segments of the market, according to the latest quarterly used car index from car finance firm GE Capital. Michael McAleer, Motoring editor, reports.
The index, which measures car prices across the State, records falls of between 2 per cent and 3 per cent in values for three year-old cars between June this year and September.
The downward trend continues with five-year-old cars, where the values of small supermini cars are averaging 27 per cent of their original purchase price, down from 29 per cent for the same car sold in June.
The greatest hit in monetary terms remains in the luxury market, where cars with average sales prices of €95,000 are selling after three years for €44,000. That's a €2,500 drop on the average value three months before.
There is some good news however, as seasonality plays its part in used prices. When compared with September last year, resale values on luxury models are up between 10 per cent and 15 per cent. This reflects the introduction of new models in late 1998, particularly the new S-Class Mercedes.
There is some more positive news from sellers. In terms of demand and consequently pricing, the five years and over age group has been surprisingly strong, with demand often exceeding supply for many popular models.
According to Eoin Lynam, marketing director of GE Capital: "There's still strong demand for well maintained cars in the €5,000 to €9,000 bracket and this fits the price profile of many models in the volume sectors.
"Small/medium family models and the Super Mini sectors have benefited most from this demand where the smallest fall in values, between 1 per cent and 2 per cent of new prices has been recorded," he says.
There's also significant numbers of '04-registered models coming on to the market already, part of a trend of pre-registration that was more prominent this year than previously.
These low-mileage, good condition cars were either former dealer demonstrator models, or cars registered to boost official sales. While they are not as cheap as a fully-fledged used car, they nonetheless offer great bargains to buyers.
Of course, for every "used" '03 or '04 car sold, this means that more and more three to five-year-old cars will enter the used market over the coming weeks.
Combine this with the arrival of three to five-year-old fleet models onto forecourts again, and dealers will be keen to sell these on before the expected large numbers of second-hands in January as the '05 models roll out of the showrooms.
Bargains will be had for the canny buyer who does his Christmas shopping on the forecourts.
Of the other trends identified by the survey, Lynam says that the improvements in diesel technology and refinement in recent years has bolstered their attractiveness to used buyers, and they are now selling strongly.
In the small/medium family segment the introduction of some high profile new models or upgrades this year, such as the VW Golf and Opel Astra, means that large numbers of the older versions are now on sale and provide good value. Expect more of the same in the New Year, when Ford's new Focus filters onto the market.
Lynam reckons that many of the family saloon models in the five-year and older bracket continue to represent exceptional value for money, having lost 75 per cent of their initial cost.
However, he strongly advises buyers to go for the ones with very high specification levels, as they won't cost much extra. It's also something new car buyers should note: extra specification pays off in the long run when it comes to selling your car.
This is exemplified by the strong performance of automatic models in everything from compact executive models like the Audi A4 and BMW 3-Series up, particularly in diesel models, which have the power to overcome the auto drain.
Finally, December is the time to buy a convertible. It may seem strange, but you'll save several thousand as it's off season and dealers will be keen to ensure that the cars move through the system.
Bear in mind that it has got to be the right colour and have extras such as power hood, alloys, leather and a high powered stereo. Engine size doesn't seem to be a significant factor to the buyer seeking the wind in his (or her) hair.