Where have all the used-car bargains gone?

HELPDESK:Answering all your motoring queries

From ML: I read with interest the piece from David Labanyi on his problems buying a used car (Car salesmen are bottom of class in customer service, August 18th). Is there a sudden shortage of them? I’ve been looking for a 2005-6 family car for the past month or so and can’t believe how few are on the market. Those were supposed to be boom years for sales, so I was expecting to find lots on offer. Is there a big car park full of used cars hidden from view? I’d understand if there was a shortage of one- and two-year-olds, but for a four-year-old car I’d have thought plenty would be available. Also, the prices are a lot higher than I expected.

Anecdotal evidence supports your experience. As you say, David found it hard to locate some popular mainstream models in the used-car fleet here, and among those purporting to be for sale here were several located in Britain. The problem with these is that a dealer who brings one over for you will probably ask for a deposit, and, as we discussed in last week’s Helpdesk, such down payments can prove legally complex and may not be refunded if the sale falls through.

It seems that many dealerships were caught with lots of stock as the recession took hold. These cars sat on the forecourts, dropping in value every day. Dealers took a financial hit on them, so they are policing their stock very tightly these days. That in turn has pushed up the price of some used cars. Then there is the impact of the scrappage scheme. Though not directly related to the age of cars you are looking for, the removal from the market of used cars that predate 2001 is having a knock-on effect up the chain. It’s one of the problems with a scrappage scheme: the Government may record a net increase in income from the scheme, and motorists get new cars slightly cheaper, but a sizeable number of cars – in this case 10,000 to date – are removed from the fleet. That in turn pushes up the prices of the remaining used cars.

For all the industry excitement about scrappage schemes, in terms of reinvigorating the new-car market and making new cars acceptable on the roads again, they do have a downside for used-car buyers. This is partially balanced by the rise in value of your own used car. Overall, though, used cars do seem thinner on the ground, and prices are firming up as a result.

Send your queries to Motors Helpdesk, The Irish Times, Tara Street, Dublin 2, or e-mail motorshelp@irishtimes.com