Used car values 'to stabilise' in 2009

Jan 9 2009

Used car owners are in for a happier year in 2009, with the rapid falls in values of the last 12 months unlikely to be repeated.

According to Eurotax Glass's, the average monthly decline in used car values during 2008 totalled 3.5 per cent - almost double that recorded during the lowest point of the last recession.

But despite the state of the UK economy showing little sign of improvement, the firm believes that prices over the next 12 months will remain more consistent.

Adrian Rushmore, managing editor at Eurotax Glass's, said the low level of new car sales and reduced supply of nearly-new vehicles would cut oversupply and allow used car values to stabilise.

"While new car sales remain at a low level, the supply of used cars entering the market will be more manageable, with fewer adverse effects on residual values," he commented.

However, Mr Rushmore added that demand would remain "lacklustre" for most of 2009, with prices for used vehicles likely to continue to decline throughout the year.

This comes after British Car Auctions' latest Pulse report revealed that average used car values improved for the second successive month in December.

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