Car Rentals » Cars Overview » Shortage of Supply Leads to Increased Value for Used Cars
Shortage of Supply Leads to Increased Value for Used Cars
A shortage in the supply and availability of used cars has led to an increase in their value. Vehicle valuation data provider CAP Motor Research Ltd., responsible for providing vehicle valuation data to the motor industry, has revealed that the normal 15% per year depreciation in used car prices has been reversed.
Normally there is a steady depreciation in the prices for used cars. But 2009 has seen used car prices actually increasing month to month by about 3.5%. This is resulting in significant increases in used car valuations.
While this trend isn’t good for anyone looking for a bargain its great for those wishing to sell their cars. The increase in the prices of used cars throughout 2009 is completely unprecendented. There’s been around 25 to 30% increase in prices for some used cars.
Some have suggested that effects of the car scrappage scheme on used car prices will not last. When funds for the car scrappage scheme come to an end in October it is expected that this trend in used car prices will be reversed.
The car scrappage scheme was introduced to boost the ailing motor industry by incentivising the purchase of new cars. For many car manufacturers the scheme has been a runaway success. Government incentives have encouraged those considering a replacement car to choose a new model.
Earlier this year it was reported that new car prices were actually lower than used car prices in the UK. This was caused by a falling demand for new cars due to the recession and fewer used cars coming onto the market.
There has also been a shift in the way that UK drivers are financing their transport needs with many opting for cheap car leasing deals or attractive cheap van lease deals rather than outright purchase.
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Filed under: Cars Overview · Tags: automobiles, car leasing deals, car manufacturers, car prices, car scrappage scheme, car valuations, contract hire, data provider, depreciation, government incentives, motor trade, motoring, new car prices, new cars, new model, outright purchase, prices of used cars, replacement car, research ltd, runaway success, secondhand cars, uk drivers, Used Cars, valuation data, van lease, vehicle valuation
