Chelsea tractors ‘worthless’ as secondhand car prices plunge

Daily Mail August 11, 2008

The second-hand value of Britain’s family cars is plummeting so fast that garages are now branding the largest gas-guzzling ‘Chelsea tractors’ worthless - and refusing to take them in part-exchange. Some are worth more as scrap, they say as demand for steel soars.

Used car values generally are set to drop by 12% between now and Christmas as the credit crunch bites, according to experts at EurotaxGlass’s.

Meanwhile, experts at price guide Parkers say the slump is being exacerbated by the Government’s controversial retrospective Vehicle Excise Duty plans which they say have ‘skewed’ the market.

As a result of this and soaring fuel prices, garages are refusing to take the biggest 4x4s in part-exchange because they are considered worthless and impossible to sell.

Parkers’ car price expert Simon Harris said: “Large 4x4s are proving impossible to part-exchange. There’s no demand for petrol off-roaders and re-sale values are plummeting. Owners of large petrol 4x4s could find themselves stuck with their cars as dealers steer clear of thirsty off-roaders.

“We have learned from trade insiders that a number of individual customers are unable to part-exchange a large petrol 4x4 for their next car.”

He added: “Perversely, older gas-guzzling cars registered before 2001 will pay less tax. So the Government’s retrospective tax grab is having the opposite effect from what it intended.

“It is forcing people to keep their gas-guzzlers because they can’t afford the extra tax - sometimes double - if they buy a newer and cleaner car.”

Mr Harris said: “Increasing fuel prices and the prospect of owners being liable for double the amount of road tax on certain high-fuel-consumption models has meant used car buyers have been more wary before deciding on their next purchase.

“There is no appetite at present for thirsty 4x4s that would typically cost £100 or more to fill up with petrol as fuel prices continue to soar, and become liable for more than £450 a year in Vehicle Excise Duty by 2010 for models currently two years old.'

Sue Robinson, director of the National Franchised Dealer Association confirmed some dealers were refusing to take in some cars.

She said: “The market for 4x4s has become tougher following the Government’s announcement in the budget of revised Vehicle Excise Duty rates for higher polluting cars. This may mean from time to time that they are less inclined to take certain vehicles in certain circumstances.

“Fear of recession is causing consumers to be more frugal than is necessary. Some of those who would have had no problem buying a new car are holding off because they feel they should be prudent.”

Previous | Next