6:19 am, December 21, 2010
HIGH quality used cars will command stronger prices early in the New Year as availability of stock dwindles says CAP.
The used car pricing expert believes that dealers will have to pay more for well-maintained vehicles in order to keep their forecourts looking fresh.
The news comes as figures from the CAP used car price index reveal that the fall in second hand car prices compared to last year slowed in December.
Despite the fact that 3 year old cars in most sectors have been trading for most of this year at lower prices than their exact equivalents a year before, the gap has reduced in recent months.
Mainstream vehicles such as typical small family cars and large family cars are now trading around 5 per cent and 4.1 per cent respectively less that last December.
However, 4x4s continued their remarkable performance to end the year – they are worth almost 10 per cent higher than in December 2009.
CAP, however, remains optimistic. The firm believes that used car trade values will strengthen during the early part of 2011 due to demand still outstripping supply in the case of good quality used cars.
Mike Hind of CAP said: ‘The New Year will be a good time to trade in a high quality used car. Our research shows that dealers are currently paying very strong prices to keep their stock levels up and that is unlikely to change any time soon.’
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