The used car market has stabilised due to a healthy balance between supply and demand, the latest edition of CAP Black Book has stated.
Compared to the beginning of March, across the board, three-year-old vehicles with 60,000 miles on the clock are worth slightly more at the beginning of April, CAP said.
Used vehicles are now able to hold on to more of their value due to the 'fragility' of the new car market putting an end to over supply. CAP believes the stability will remain in place through the month of April.
CAP's latest Black Book says: "The ending of official scrappage may well bring renewed focus by customers on used cars. Such an increase could be significant in its impact on late stock in particular.
"Because the exchange rate still does not favour the pursuit of volume for its own sake there is still a good balance of supply and demand. Along with the ongoing step back from short-cycle business this suggests that the balance could swing toward a significant shortage of late stock. In turn this could push prices up."
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