Most sellers say used automotive costs and values are heading in the direction of stability though greater than eight out of 10 used automotive sellers (84%) nonetheless count on them to proceed to fall this 12 months, new analysis reveals.

The March Startline Used Automotive Tracker says that one in 5 (20%) assume the speed of fall will speed up, 28% imagine they’ll proceed on the present pace, and 36% that they are going to be much less extreme.

Paul Burgess, CEO at Startline Motor Finance, mentioned: “Over the past 12 months, used automotive costs and values have fallen by a few fifth attributable to elements comparable to step by step rising inventory provide and lowered client demand.

“The overall view on this has been that costs and values have been inflated to a really excessive peak and that some type of readjustment was at all times going to return. The query for sellers is how far the market goes to in the end fall?

“Our findings are that sellers typically don’t assume the realignment is over. Though there may be some disagreement over how far issues might but fall, the bulk view is that the worst is over, which is we agree is the most definitely state of affairs.”

Nonetheless, Startline’s analysis additionally reveals 16% of sellers assume that the state of affairs has stabilised and the identical quantity (16%) imagine that costs and values will begin to rise.

Burgess mentioned: “We’re additionally seeing a major minority within the Tracker outcomes who imagine that costs and values at the moment are steady and will even rise. Seeing differing sentiments of this kind maybe underlines that there’s a diploma of uncertainty within the used automotive market.

“Apparently, 8% of the sellers we questioned additionally assume that the market is returning to one thing extra like earlier than the pandemic and we broadly agree with that sentiment. We’re most likely seeing the return of one thing that may in historic phrases be thought-about a lot nearer to a usually working used automotive market with costs changing into extra reasonably priced.”

The Startline Used Automotive Tracker is compiled month-to-month for Startline Motor Finance by APD World Analysis, well-known within the motor trade for his or her enterprise intelligence reporting and buyer expertise applications. This time, 304 shoppers and 61 sellers have been questioned.