Used car prices rise as demand increases
A year of rising used car values means that second hand cars are becoming more expensive than ever. Latest research from Parker’s shows the value of small used cars have been on the increase since July 2008, the value of a three-year-old Citroen C1 has gone up by £830 in that time. A 1.0-litre Rhythm model that was worth £4020 in July 2008 is now worth £4850. The bigger more expensive used cars are recovering to the prices of this time last year with 4x4’s making the strongest recovery after a depressing steep drop at the end of 2008.
One of the reasons behind the increase in prices is competition at auctions from dealers. As dealers attempt to replenish their used car stock, which has fallen due to the lack of new car buyers and old cars as part exchange, they have had to visit auctions with the greater competition among them driving prices up.
There is a greater demand for smaller cars to reduce running costs which is another reason for the increase in value, this is disappointing news for motorists looking to buy a new small car as some manufacturers have put prices up three times in six months, with the prices of used cars rising buyers will be paying more than ever for a small car.