Record price rises in the used car
market over the past two months have now levelled out, data company
Used car prices have returned to the
levels seen in November 2008, after falling sharply over the course
of last year, before undergoing an “unprecedented upturn” in the
first four months of this year, CAP said.
“One of the main drivers for stronger
used values this year has been a shortage of used car stock,” the
data company observed
“This was caused by a combination of
few part-exchanges due to the slump in new car sales, lower
production leading to fewer late plate cars and the extension of
some leasing contracts keeping fleet cars out of the market.
“More volume is, however, expected to
enter the market during the next few weeks as confidence among
disposers continues to grow.”
The demand for stock has fallen off
since the end of the first quarter of 2009, however, with
conversion rates for leasing companies dropping from 95.4 percent
some weeks ago – an all-time high – to 86.6 percent in April,
although this figure is still 14 percent higher than at this time
Meanwhile, Glass’s Guide has predicted
that residual values for used cars will end up stronger at the end
of 2009 than at the end of the previous year.
“An average three-year-old car will be
worth £5,100 in December this year – some £700 more than a similar
car would have changed hands for at the end of 2008,” predicted
Adrian Rushmore, managing editor at Glass’s.