Second-hand prices normally dip at this time of the year and the latest quarterly used car index from car finance firm GE Money shows values easing back by around €500 for family-sized models and by up to €2,000 at the higher end of the market, writes Patrick Logue
After three years, your small city car will be worth only 44 per cent of what you paid for it and only 28 per cent of the purchase price after five years. This compares to 46 per cent and 29 per cent on the same cars, Daihatsu Cuores, Ford Kas and Hyundai Amicas for example, when the GE index was last published in July.
This downward trend is also evident at the top end of the market, where luxury large executive models lose value in jig time. A Mercedes S-Class or BMW 7 Series worth about €100,000 when driven off the forecourt will be worth on average 48 per cent of purchase price after three years, and only 26 per cent after five years. Last July the figures were 51 per cent and 27 per cent respectively.
The supermini, small family and compact executive segments of the used car market continue to hold their value best.
"The smaller city car segment is currently getting a boost with the recent introduction of the Toyota Aygo, to be quickly followed by similar sized models from Citroen and Peugeot," said GE Money marketing director Eoin Lynam.
In the small car segment, which includes the Yaris, Fiesta and Fabia, after three years you can expect to get back an average of 34 per cent of what you paid, although this is down from 37 per cent in July.
After three years a return of 53 per cent is expected, compared to 56 per cent the last time the survey was carried out.
Overall, the used car market remained relatively buoyant in the third quarter, according to GE with "very good demand" for well maintained cars in the €4,000 to €7,000 bracket.
A busy year is predicted with the maturing of the first SSIAs in April, although GE predicts many car buyers will not necessarily splash out and will opt to finance their new cars next year.
But right now is the time to snap up a good value second-hand model from dealerships eager to have empty forecourts when those trading up to an 06 reg arrive in January looking to trade in their old cars. Dealers will be keen to shift any second-hands before the end of the year offering a great opportunity to consumers to take the upper hand.
Buyers can strike particularly good deals by looking out for stragglers on the forecourt that they may be able to secure at a cut-down price.
"Dealers want to enjoy their Christmas safe in the knowledge that their new car order books are full and the used car forecourts have been cleared in anticipation of the arrival of all those trade-ins in January," adds Lynam.
Diesels are becoming an increasingly attractive option for both sellers and buyers of new cars. With the fluctuating and high cost of fuel and the improving power and quietness of diesel engines, models in this category are selling exceptionally well with demand exceeding supply, particularly in the larger segments.
The GE survey also found that the range of models coming on the market this year is much wider than previous years. Multi-purpose vehilces and coupes, previously considered niche, are now more readily available. They will hold their value better than standard family models and so are considered good purchases either new or second-hand.
However, estate cars are still hard to come by with a "virtual absence" of good second-hand examples. Estate drivers are few and far between in Ireland and they tend to keep their cars for the long haul. However, they are becoming more common and a few new models are expected to stimulate demand. Good examples of some new more stylish estates (that don't look like saloons with an extra portion built over the boot) are the Peugeot 407, the Audi A4 and the Volvo V40.
GE advises buyers of new cars in the new year should consider the specifications they opt for. Basic models will be harder to re-sell and buyers will look for air-conditioning, alloys and a good stereo included.
A final thought for those who have always wanted a second fun car, now is a good time of the year to snap up the classics, sports cars and other niche models which are harder to shift in the dark months of winter.