Used Cars Worth More Due to Shortage

Fewer used cars has led to an increase in their value during 2009. Vehicle valuation data provider CAP Motor Research Ltd., responsible for providing up to date vehicle valuation data to the automobile industry, has said that the normal 15% depreciation in used vehicle prices has been reversed in 2009.

Normally there is a steady depreciation in the prices for used cars. But 2009 has seen used car prices actually increasing month to month by about 3.5%. This is resulting in the values of used cars going up.

While this trend isn’t good for anyone looking for a bargain its great for those wishing to sell their cars. The increase in the prices of used cars throughout 2009 is completely unprecendented. There has been as much as a 25 to 30% increase in the prices for some used cars.

It has been suggested that the effects of the UK car scrappage scheme on used car prices will be short-lived and not last. When the UK car scrappage scheme runs out of funding in October it is anticipated that we will see a reversal in this trend.

The car scrappage scheme was introduced to boost the ailing motor industry by incentivising the purchase of new cars. For many car manufacturers the scheme has been a runaway success. Government incentives have encouraged those considering a replacement car to choose a new model.

Earlier in 2009 it was reported that some new cars were actually cheaper than second hand ones in the UK. Fewer used cars coming onto the market combined with a decrease in demand for new cars is cited as the cause.

There has also been a shift in the way that UK drivers are financing their transport needs with many opting for car leasing deals or attractive van lease deals rather than outright purchase.

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