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 vehicle value data to the motor industry, has said that normally there would be around 15% per year depreciation in use car values but this trend had been reversed in 2009.

The used car market normally experiences a steady depreciation in car prices. But this year there has been a complete reversal with used car prices actually increasing month on month by about 3.5%. This is resulting in significant increases in used car valuations.

This is good news for those wishing to sell their cars but not so good for people looking for a bargain. The price rises for used cars in 2009 have been completely unprecedented. There has been as much as a 25 to 30% increase in the prices for some used cars.

Some have suggested that effects of the car scrappage scheme on used car prices will not last. When funding for the car scrappage scheme ends in October it is likely that we will see a reversal in this trend.

The car scrappage scheme was introduced in an attempt to boost the ailing auto-industry. For many car manufacturers the UK car scrappage scheme has been a great success. Government incentivisation has prompted those who were 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. The primary causes are thought to be a decrease in the number of used cars coming onto the market along with less demand for new cars.

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

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