Used car values 'set for recovery'

Industry experts are expecting the values of used cars to be considerably higher by the end of 2009 than they were in 2008.

The publishers of Glass's Guide predict a 16% year-on-year increase after an unprecedented drop in used car values during the last few months of last year, followed by sharp rises due to an increase in demand accompanied by falling supplies.

Glass's managing editor, Adrian Rushmore, said that an average three-year-old car would be worth £5,100 in December 2009 compared with around £4,400 a year earlier.

"If retail sales of used cars are down by no more than 10 per cent this year, prices should not collapse," he added. "The traditionally low seasonal points of the summer and winter will still see a decline in values but the effect will be less marked than in 2008.

"Furthermore, inflation-busting increases in new-car prices, already implemented by a number of manufacturers, will soften the seasonal influence on used cars under one year old."

Glass's says that, with a degree of stability having now returned to the market, demand from retail buyers for used vehicles should remain relatively strong.

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