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Used prestige SUVs ‘becoming more affordable’

The price of the average one-year-old prestige brand Sports Utility Vehicle (SUV) is seven per cent lower than at the same point 12-months ago, equivalent to a £2,500 fall in the typical asking price.

According EurotaxGlass’s, used prestige SUVs are becoming increasingly affordable due to wider availability, growing competition in the segment, and falling waiting lists for most new models.

‘Residual values for prestige SUVs are finally falling from the high levels that have prevailed for the last 36 months,’ said Richard Crosthwaite, prestige car editor at EurotaxGlass’s.

‘The good news for existing owners is that we now expect to see rates of depreciation for these cars level out, and they will still outperform most other prestige car segments.’

The EurotaxGlass’s analysis indicates that a 12-month-old BMW X5 3.0d Sport SE (auto) currently has a trade value of £36,625, approximately nine per cent or £3,550 down on what an identical X5 of the same age would have achieved in March 2005.

Similarly, a Volvo XC90 D5 SE (auto) now has a value of £28,650, some £3,450 or 11% lower than at the same point last year.

The Porsche Cayenne has also suffered, with a Cayenne S (auto) now worth £40,600 compared to £42,825 in March 2005 - a fall of five per cent or £2,225.

Meanwhile, a Mercedes-Benz ML270 CDI (auto) has a trade value of £25,000 this month, around £1,150 lower than the £26,150 that would be paid for the same age of ML270 CDI in March 2005.

‘Without exception, the vehicles that perform best in this segment are the diesel variants, and they will continue to do so,’ said Crosthwaite.

‘Re-sale prospects are also aided by a good metallic colour - metallic black being the best, automatic transmission and satellite navigation.’

Crosthwaite says failure by buyers of new prestige SUVs to adhere to these basic rules can result in resale values that are several thousand pounds lower. ‘The absence of sat nav alone can take at least £2,000 off the trade price of a 12-month-old prestige SUV, with a similar sum deducted for a manual gearbox,’ he said.

Looking forward, the launch of new models such as the Audi Q7 will add some further used supply into the segment, but the resulting increases will be modest for at least the next 18-months.

‘Supply issues will not adversely effect values to any significant extent,’ said Crosthwaite.

‘However, it must be remembered that patterns of demand in the prestige market are very much driven by popular tastes, so significant new arrivals will accelerate rates of depreciation for models that are at a more advanced stage in their product lifecycle.’

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