Derry Journal Motoring: USED CAR TRENDS

Despite the overall acceleration in growth, average used car retail price growth is being held back by the ongoing contraction in used electric vehicle values (£33,060), which as of mid-March, were down 13% on the same period last year. In contrast, the average price of a used petrol (£16,102) and diesel (£16,236) car is up 4.3% and 2.4% respectively.

However, prices show significant variations when total mileages are considered. A recent survey by ‘CarGurus’ shows that cars with over 100,000 miles on the odometer are in lower demand, despite the generally lower asking prices. The survey found motorists are most reluctant to buy an electric vehicle (EV) with over 100,000 miles (8.9%) compared to petrol (13.3%) and diesel (15.5%). Mileage is an important consideration, for while a car may be offered for sale within its original warranty period, nearly all warranty cover has a maximum mileage stipulation which negates the given time period.

Overall, the most important factors stated when buying a used car included vehicle price (55%), mileage (36%), MPG (34%), age (27%) and safety (23%). Despite a shortage of used cars entering the market according to the SMMT, the survey found that just 13.3% of drivers would be willing to buy a petrol car with over 100,000 miles on the odometer, while 15.5% would buy a diesel. Notably, when asked the same question regarding electric vehicles, an even lower proportion of the 1,000 drivers surveyed (8.9%) would purchase an EV with 100,000 miles or more.

The research also indicated that consumers were less likely to purchase a higher-mileage EV compared to petrol or diesel vehicles. The mean mileage at which drivers would be put off buying an EV was 49,900, in contrast to 60,500 for petrol and 64,000 for diesel cars.

‘CarGurus’ took three typical models from its extensive online inventory to show how higher mileages impact on prices across identical models. A Nissan Leaf N-Connecta at three years old with 10,000 miles on the clock was seen to cost £19,500 while a 25,000 mile model was listed at 10% less and 20% less with 45,000 recorded miles.

A 5-year old Ford Fiesta 1.25 Zetec 5-door showing 50,000 miles was listed at £8,000 while those with 75,000 recorded miles showed a 10% reduction in price and 100,000 mile models dropping by 37.5%.

A 5-year old VW Golf 1.4 TSI SE was priced at £13,500 with 50,000 miles with 75,000 mile models showing a reduction of 18.5% and 100,000 mile models dropping 30%.

However, the car brands that consumers are most like to purchase when considering petrol or diesel vehicles with over 100,000 recorded miles were topped by Ford, ahead of four German manufacturers in the Top Five – Audi, BMW, Mercedes and Volkswagen.

Jim McCauley