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Banger market booming despite being left behind
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Thousands of car buyers are leaving their bangers behind and turning to newer cars in order to make the most of low cost PCP deals, according to motor traders Glass's.
However, it also seems that despite the switch from old to new the banger market is exploding with values and volumes rising significantly.
Rupert Pontin, head of valuations at Glass's, says the contradicting reports is an interesting circumstance.
"Since the start of 2014, the number of cars over 10.5 years old being sold at auction has increased by around 50%," says Rubert Pontin. "We believe this is because large numbers of buyers are selling their bangers and signing up to low-cost new and used car PCP deals to get behind the wheel of a newer model.
"However, instead of this flood of bangers entering the market leading to a collapse in values, they have actually increased quite substantially. The average auction price for a 10.5 year-plus car in January 2014 was £725 but in June of this year, it was £875. Enough new buyers are entering the market to soak up the extra volume and the banger market is actually in excellent health."
The surge in the market comes partially as a result of improving economic conditions according to Glass's, with car drivers putting their trust in bangers also playing a part.
"More people are feeling confident about buying and running a car at the entry level - but also the quality of older cars on sale is improving all the time," says Rupert Pontin.
"We see many bangers going through auction in excellent condition at very reasonable prices and, for many people, they make extremely sensible purchases.
"It is very much a case of 'The banger is dead. Long liver the banger!'"
Doubts remain though over the boom in the banger market and if it will continue for much longer, with Rupert Pontin noting whether many more people would opt for a PCP deal on a newer car and if banger values would continue to increase over time.
"The number of people switching into PCPs does not really show any sign of slowing down and this means that the volume of older vehicles on the market will continue to grow," says Rupert Pontin.
"At some point, this will lead to oversupply and falling values but it is quite difficult to predict exactly when."
