Used car market shows signs of stability

Jun 3 2009

New figures from the used car industry have suggested the market is beginning to show some signs of stability following the plunge in average prices at the end of last year and their rapid rise at the start of 2009.

June's edition of CAP's Black Book, the independent benchmark guide to used car trade values, has suggested there exists a better balance of supply and demand than has been in evidence in the used car market over recent years.

The figures are similar to the organisation's findings in May, suggesting the market is returning to normality after the highs and lows over the past 12 months.

"Black Book is also finding evidence that the scrappage scheme is diverting customers away from smaller late plate cars - as CAP originally predicted - some of which are therefore not performing as strongly as the year goes on," the company said.

"Looking ahead to the coming weeks and months there are no signs of significant volume returning anytime soon. With most car buying activity currently focused on the used sector we therefore anticipate a similar picture over the next few months," added Mark Bulmer of Black Book.

Recent figures from Glass's and the British Car Auctions organisation have suggested average used car prices will be higher by the end of 20009 than they were in the final months of last year, when the economic crisis caused a major slump in sales of used cars.

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