Used values predicted to end the year above 2008 levels
06 May 2009
A shortage of used cars should mean residual values continue to stay strong through to the end of 2009, according to residual value expert Glass's Guide.
The firm predicts used prices will be 16% higher this December than they were at the end of 2008, with the average three-year old model worth £700 more at £5100.
Glass's predicts used car demand will stay comparatively strong through the rest of 2009, dropping 10% compared with 30% for new cars. That means supply is unlikely to outstrip demand.
Glass's also said that the Government's scrappage scheme shouldn't adversely impact upon the used market as there won't be an increase in cars being traded in.
"The introduction of a 'scrappage' scheme might kick-start the new-car market but it will not add any used car supply, thereby protecting values," said Glass's managing editor Adrian Rushmore. "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."