Used car values fall in October

Nov 20 2008

There was good news for unsecured Car Loans customers in the market for used cars after prices fell again in October.

Despite a 3.5 per cent increase in September, Manheim's latest monthly market report showed that values fell by £278 last month to an average of £6,002.

This means second-hand vehicle hunters could find better deals for their Car Finance as they seek to upgrade their current models.

Commenting on the report, Manheim managing director Mike Pilkington suggested the market was now beginning to stabilise.

"Following the unexpected rise in average sales values in September the market is now back in line with trends experienced throughout most of this year," he said.

However, he revealed that buyers searching for small hatchback and medium family vehicles would in fact have to pay more, with prices rising on these models as motorists increasingly turn towards smaller and more fuel-efficient cars.

This follows a study by HPI which found that the value of one-year-old used cars has fallen by an average of 24 per cent over the past 12 months, with the cost of three-year-old models down 28.1 per cent.

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