Used Cars Increase in Value

A growing shortage of used cars has resulted in an increase in their value this year. CAP Motor Research Ltd., responsible for providing vehicle valuation data to the motor industry, has revealed that the normal 15% per year depreciation in used car prices has been reversed.

The used car market normally experiences a steady depreciation in car prices. But this year there has been a complete reversal with used car prices actually increasing month on month by about 3.5%. This is resulting in the values of used cars going up.

While this trend isn’t good for anyone looking for a bargain its great for those wishing to sell their cars. The price increases for used cars during 2009 have never been seen before. There’s been around 25 to 30% increase in prices for some used cars.

Some have suggested that effects of the car scrappage scheme on used car prices will not last. When funds for the car scrappage scheme come to an end in October it is expected that this trend in used car prices will be reversed.

The car scrappage scheme was introduced in an attempt to boost the ailing auto-industry. For some car manufacturers the scrappage scheme has been a big success. Government incentives have encouraged those considering a replacement car to choose a new model. Luxury car providers have suffered due to a fall in demand due to the current recession

Back in April it was reported that, for the first time, some new cars were actually cheaper than used ones in the UK. The primary causes are thought to be a decrease in the number of used cars coming onto the market along with less demand for new cars.

There has also been a shift in the way that UK drivers are financing their transport needs with many opting for cheap lease car deals or attractive cheap van lease deals rather than outright purchase.

For a great Vauxhall contract hire deal visit www.nationwidevehiclecontracts.co.uk