Millions of used petrol and diesel owners are missing out on a massive payday with motorists making incorrect assumptions about second-hand car values, according to experts.
Alex Buttle, co-founder of used car marketplace Motorway claimed that road users “don’t see their car as an asset”.
This means millions of road users are “unaware of the value of their car” and leaving thousands of pounds worth of vehicles on their driveway.
A recent poll from Motorway found that an estimated 2.6 million Brits have an excess vehicle sitting dormant at their property for over a year.
The survey found that a whopping 30 percent of households have at least two or more cars on their driveway at any one time.
Meanwhile, a staggering 75 percent of Britons (37 million road users) incorrectly think that their car will always go down in value.
This is potentially putting people off from cashing in on one of their most valuable assets amid the ongoing cost of living crisis.
Alex explained: “For many people, their car is one of their most valuable assets.
“However, our research shows that too many car owners still don’t see their car as an asset and as such, are unaware of the value of their car or how it depreciates over time.”
A recent poll from the Motor Ombudsman found saving money was one of the most important factors for second-hand car owners.
A staggering 58 percent of consumers’ primary motivation when buying a second-hand car was cost.
Used vehicle experts Inchcape claims models tend to drop over 50 percent of their value in the first three years.
However, they stressed it was not as simple as that with certain factors still coming into consideration.
They warned depreciation can depend on a number of different factors including the mileage and condition of the model.
Earlier this week, AutoTrader, the leading used car online marketplace, stressed the used car market was in a strong condition heading into the spring.
Richard Walker, Auto Trader’s Director of Data & Insights, warned there were “promising signs” that pressure was beginning to ease on consumers of second-hand models.
He said: “Across the market overall, although we’re seeing signs of used car prices stabilising, they’ve softened over the last few months, largely fuelled by trends in the wholesale market and a gradual easing in supply constraints.”
