Used car buyers face auction price increase

The price of buying used cars at auction is set to increase severely, it has been claimed.

According to the RMI Society of Motor Auctions (SMA), auction houses will have to raise their prices due to economic pressures, resulting in the hike for consumers.

Louise Wallis, head of the SMA, remarked that low costs are only sustainable when turnover is high as well as low margin, adding that this year's credit crunch is also partly to blame.

She said: "Energy and business rates have both increased, as has the cost of insurance, labour and consumables. The 50 per cent increase in fuel prices since December last year has also made a significant impact on margins."

This comes as Easier has cited research that 64 per cent of motorists in the UK will be looking to purchase a used car rather than a new one next time they buy.

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