Used Cars

The credit crunch has brought about more pronounced levels of price depreciation at the luxury end of the used car market.

Over 5 million people plan to buy a second-hand car in the six months leading up to February 2009, according to new research.

Over a third of used car buyers are downsizing to smaller, more cost-effective cars, according to the Glass's Guide used car valuation website.

Used values have continued to fall in the UK car market, with average valuations of three year old vehicles down by more than 25 per cent year-on-year, according to the HPI Used Car Valuations Index.

Car dealer confidence in the used car sector has plummeted according to the latest Motor Trader Used Car Barometer.

Car dealers have been warned to pay closer attention when appraising part-exchange vehicles in order to maximise profits during this turbulent period of economic instability.

Used car prices at auction could be stabilising, with Manheim's August figures showing a 1.7 per cent drop (£103) - compared to a 6.3 per cent fall in July (£413).

Used car residual values look set to weaken further as dealers move to cut down on stock ahead of the September plate-change.

Values of larger, less fuel-efficient cars have continued to fall as drivers opt for smaller vehicles with lower running costs.

Used car values are set to fall by 12 per cent between now and Christmas, according to EurotaxGlass’s.