Smaller Not Now Cheaper
Simon Donohue
IT seems that size matters when it comes to bagging a second-hand car from Ford
or Vauxhall at the moment.
According to EurotaxGlass's, the latest-generation Ford Focus and Vauxhall Astra,
pictured, are depreciating at a much slower rate than their siblings in the sector
above - the Ford Mondeo and Vauxhall Vectra. When age, specification and mileage
are comparable, the smaller car from the same manufacturer will have a used retail
price up to £1,500 higher.
For example, a 2005 '05-plate Ford Focus 2.0 Zetec five-door with 8,000 miles
on the odometer would this month typically have a retail price of £11,900,
compared to £10,550 for a 2005 '05-plate Ford Mondeo 2.0 Zetec five-door
with identical mileage.
Vauxhall
There is a similar story with the equivalent models from Vauxhall. For example,
a 2005 '05-plate Vauxhall Astra 1.6 Club five-door (after 8,000 miles) currently
has a retail price of around £10,100, whereas a 2005 '05-plate Vauxhall
Vectra 1.8 Club five-door can be found for £9,600, despite it having
a more powerful engine and being the bigger car.
This misalignment of residual values occurs because the Focus and Astra have
been launched more recently, and the availability of used examples is low relative
to retail demand.
In contrast, the Mondeo and Vectra are a later stage in their planned lifecycle,
so demand has eased back and supply is now plentiful.
