6:08 pm, November 3, 2011
USED prices were firmer between September and November than the previous three months, says CAP.
The CAP used car price index shows that due to a reduction in the number of used cars available overall at the three year old mark, prices are relatively stable in most cases.
This low volume of available stock is helping to compensate for muted retail demand, due to consumer caution, says the firm.
Superminis are benefitting from the relatively stronger demand for running cost economy and fell, on average, by just 1.9 per cent between September and November. Lower medium – or small family – cars are also enjoying similar demand, falling in value by an average of just 2.6 per cent over the same period.
Also worthy of note are upper medium – large family – cars, which have historically often been especially vulnerable to oversupply and consequent heavy depreciation. These vehicles saw an average reduction of just 2.3%.
Convertibles have fallen 9.6 per cent, while 4x4s have risen 3.2 per cent.
Mike Hind of CAP said: ‘Although there remains precious little economic good news and consumers remain nervous about making big ticket spending commitments, the positive message is that more stable used car values means slower depreciation for owners.
‘Thanks to low volumes of cars available, even the usual suspects for heavy depreciation, such as large family cars and popular executive models, have been seeing relatively strong value retention as we head toward the end of the year.
‘Indeed, many used car values moving into November have been unusually strong at a time when historically prices have tended to be much weaker.’
