Used cars drop in price during 2011

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08 February 2012 at 08:31

Although the UK economy experienced high inflation during 2011, the price of second-hand cars fell by over £100, according to the latest figures.

On average, the price of a used vehicle decreased from £9,155 in 2010 to £9,018 in 2011, research by Auto Trader indicates.

However, due to fewer new cars being sold during 2009, there are now less three-year-old cars on the market. This has resulted in their prices increasing by over 6% in the last two years. In comparison, vehicles over 10 years old fell in price by an average of 6%.

In London the average price of a used car decreased from £10,097 in 2010 to £9,504 in 2011, with around 16.7% of them over 10 years old.

Prices generally decreased throughout 2011 until November and December when they rose slightly.

Tim Peake, a director at Auto Trader, said: "The impact of reduced new and used-car transactions, created by relatively weak consumer demand, is leading to lower overall retail prices for used cars."

Mr Peake said this was good news for those wanting to buy a car in 2012 as there should be some very good deals on offer.

Copyright Press Association 2012