Those considering entering the used-car market should consider several developments in the past few months, none more so than the 14 per cent rise in new car sales.
Ignoring suggestions that pre-registrations play their part in the rise, the figures generally mean that for every new car sold, a used one is added to the forecourt. So, a rise in new car sales means a rise in the number of dealers keen to convert used metal into cash.
To be fair, there seems to be a much better system in place for managing used cars and avoiding the jolt busy periods such as 2000 once had. In general, used car prices are strengthening in all but the upper end of the market.
Values for 2005's first quarter are down only marginally on the end of 2004, showing the continuing strength of the used market.
Like new cars, some 45 per cent of used cars are sold in their first three months of the year. After that, their values begin to drop.
If there is any price pressure, it's in the prices of used executive saloons - and it's especially evident in the three-year-old market.
However, individual issues remain in the market. For instance, Audi fans seem eager to go for the old A4 rather than the new - several dealers have been keen lately to highlight the fact that they have the older models in stock. It seems the new-look larger grille has not been a hit with all Audi fans.
At executive and luxury level, average values after three years are also higher so far this year. Some new models launched in the past month have added spice to the market and will encourage a good selection of used models back to the market.
The new BMW 3-Series has attracted lots of attention in both petrol and diesel. The new Ford Focus is also available in Saloon version and Mercedes has introduced its new CLS 4-door coupé.
If you're seeking a good buy at present, look to the family saloon market - here five-year-old models are down to 29 per cent of original value. That's bad news for those trying to sell them, but good for buyers who know that most will survive at least another five years if properly maintained.
In the supermini category, five-door is still king and the higher the specification the more it will be worth when you sell. Avoid trivial things such as leather seats, but add on practical features such as a good radio and electric windows. These will help sell the car.
The same can be said of diesel. Buyers used to focus on practicality above all, but the diesel image has changed significantly. Now, alloys and even a sports kit are not out of place on a diesel saloon - and can add value.
Trying to sell an executive model with automatic transmission, leather seats, CD player and air-conditioning may prove very difficult. According to Eoin Lynam, GE Money's marketing director, "one of the top tips this quarter has been to opt for used compact executive models over conventional family saloons. You can get a good quality three-year-old executive model with a good brand name and it will only lose €7,400 over the next two years. That's just over €1,000 more than the regular family saloon will lose you and that cost is spread over the two years.
"For example, the average family car is worth €13,650 after three years and €7,600 after five. The compact exec model is worth €24,400 after three and €17,000 after five years."
Other tips from GE Money include trading in superminis now, while there is a shortage.
As for colour, silver was "the new black" in the late 1990s and almost flooded the market. "It still sells well," says Lynam, "but it's not the banker it once was."
