Used car values 'to continue growing'

May 6 2009

The value of used cars will continue to rise this year and will end up ahead of the position they were in at the end of 2008, it has been claimed.

Research from car value monitor Glass's has suggested that while used car values suffered at the start of the global recession last year, they have recovered well during the first part of 2009 and will continue to rise over the months ahead.

"An average three-year-old car will be worth £5,100 in December this year - some £700 more than a similar car would have changed hands for at the end of 2008," said Adrian Rushmore, managing editor at Glass's.

He added: "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."

Used cars have become increasingly in demand over the past few months as drivers are reluctant to splash out on a brand new car during the recession, preferring to save their pennies.

The slowdown in the new car market has hit major manufacturers across the globe, with the likes of FORD and GM being forced to cut production levels.

Meanwhile, Chrysler recently went into administration, but it was immediately bailed out by Italian manufacturer Fiat, with the two firms set to create a new joint venture together.

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