Why you should sell your car NOW (and lease one Instead)
Last night (06/01), ITV documented the current state of the UK used car market. Did you know that if you’re a car owner you can benefit from the high prices and demand in the used market, and pick up a brand new leased car for great value monthly rentals?
“It’s interesting with houses, often people are in the habit of, you know, checking the market more regularly. But actually, it’s not something people typically do with cars. But at the moment, given that we have seen a number of months of pricing growth north of 20%, I think it’ll be a shock for some people quite how much value might be sitting on their driveway” – Catherine Faiers, COO of Autotrader
But how do you take advantage?
- Own outright? Check your trade-in value (you can do that right here). You might be sitting on more than you thought.
- Have a Hire Purchase or PCP contract? Get an early settlement figure from your finance company to see how much equity you have – it might be worth cashing in early here.
“If you’re looking to buy in the used market, then prices are high” – Steve Fowler, Editor-in-Chief of Auto Express
Here is an example of the rise in used car values:
Used VW Golf 1.0 SE Navigation 5 Door in Pure White Paint – 68 Plate – 1 Owner – 29,000 miles
We sold one of these cars in January 2021 for £11,200.00, the same car today with the same mileage is now worth £13,800.00 – That’s a £2,600 increase in just 12 months!
Prices in the used car market are high because demand is high. This is due to a couple of things. New car registrations are down around 40% due to the shortage of vehicles available in 2021. Thousands of customers have been waiting to get exactly what they want in 2022 when (hopefully) production returns to a more normal level, and demand for used cars is high because the supply of new cars, thanks to the semi-conductor shortage, is so low – some models have a lead time as far away as 2023 even if you order today.
If you’re in the market for a new or used car, but don’t want to pay over the odds for a used one, our first tip is get the ball rolling now. When the used market is booming, residual values on leased cars are high – which means monthly rentals are low. UK Carline Vehicle Leasing knew this was coming, so we pre-ordered lots of vehicles last year to lock in last year’s prices. That means that our customers can take advantage of low monthly rentals on a wide range of vehicles ready to lease this year.
This is the best time for you to bag a bargain, so follow our top tips:
- If you have a used car that you own outright, get an up to date valuation using our link here.
- If you have a car on Hire Purchase (HP) or Personal Contract Purchase (PCP) get a settlement figure from your finance company, find out how much it will cost to settle your agreement and get an up to date valuation on your car. If the valuation is higher than your settlement, it may be worth cashing in.
- If you have a car on a lease agreement (Personal or Business contract Hire) that is due to be returned this year, search for a replacement now, do not leave it until the last minute or you may end up without wheels.
- If you have a car on order already that’s delayed, speak to your broker or finance company to see if you can extend your current lease.
- Check out our fantastic price protected offers available online or over the phone .
UK Carline Vehicle Leasing have been providing new car and van leasing to our customers throughout the UK for over 20 years. Read our online reviews to see what our customers say about our service here.
View our latest offers here.
UK Carline Vehicle Leasing – “it’s not just a rental, it’s a relationship”
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