Used car values continue to fall

Nov 17 2008

The value of used cars is continuing to fall in most market segments, a new report has revealed.

Like many sectors of the economy, the secondhand vehicle market has suffered badly in the wake of the credit crunch.

A study by HPI found the value of one-year-old used cars has fallen by an average of 24 per cent during the past 12 months.

Car Credit customers seeking a bargain will also find that the cost of three-year-old vehicles has plummeted by 28.1 per cent during the period.

Petrol 4x4s and MPVs experienced the biggest decline in prices, with motorists now able to pick up three-year-old models for less than two-thirds of what they would have paid in autumn 2007.

However, HPI's research found that the rate of depreciation on city cars and superminis is beginning to slow.

The news comes after What Car? Published figures showing the average discount available on a new car has increased by £244 to £1,932 since the start of 2008.

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