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Used cars 'now gaining in value' | Used cars 'now gaining in value' |
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Second-hand cars are gaining rather than depreciating in value due to a shortage in supply, an industry-wide research company has found. | Second-hand cars are gaining rather than depreciating in value due to a shortage in supply, an industry-wide research company has found. |
CAP Motor Research Ltd, which provides valuation data to the car industry, said the usual 15%-a-year depreciation of used car prices has been reversed. | CAP Motor Research Ltd, which provides valuation data to the car industry, said the usual 15%-a-year depreciation of used car prices has been reversed. |
Companies delaying replacing their fleets and the government scrappage scheme has led to a shortage in supply. | Companies delaying replacing their fleets and the government scrappage scheme has led to a shortage in supply. |
This year the average family car has increased in value by about £600. | This year the average family car has increased in value by about £600. |
Mike Hind from CAP Motor Research Ltd told the BBC: "What usually happens in the second-hand car market is a steady depreciation. | Mike Hind from CAP Motor Research Ltd told the BBC: "What usually happens in the second-hand car market is a steady depreciation. |
Nearly everything that comes in is being sold at the moment and that is very, very unusual Tim Naylor, British Car Auctions | Nearly everything that comes in is being sold at the moment and that is very, very unusual Tim Naylor, British Car Auctions |
"But this year we have seen the complete reversal of that, with used-car prices rising on a month-by-month basis by about 3.5% which is translating into really big rises in the values of used cars." | "But this year we have seen the complete reversal of that, with used-car prices rising on a month-by-month basis by about 3.5% which is translating into really big rises in the values of used cars." |
Mr Hind added: "The high values are good news if you want to sell your car but not so great for second hand dealers or anyone trying to pick up a bargain." | Mr Hind added: "The high values are good news if you want to sell your car but not so great for second hand dealers or anyone trying to pick up a bargain." |
Tim Naylor, from British Car Auctions, told the BBC the price rises he has seen in 2009 have been "completely unprecedented". | Tim Naylor, from British Car Auctions, told the BBC the price rises he has seen in 2009 have been "completely unprecedented". |
He said: "Prices have gone up between 25 and 30% depending on the car. | He said: "Prices have gone up between 25 and 30% depending on the car. |
"Nearly everything that comes in is being sold at the moment and that is very, very unusual." | "Nearly everything that comes in is being sold at the moment and that is very, very unusual." |
SECOND-HAND CAR PRICE RISES Peugeot 107 Urban 07/07 plate, 20,000 miles: Jan value £4,575 - Sept value £4,850 = +£275Ford Focus 1.6 Zetec 5dr: 06/06 plate, 30,000 miles: Jan £4,700 - Sept £5,625 = +£925VW Passat 2.0 SE Tdi 4dr, 06/06 plate, 30,000 miles: Jan £7,550 - Sept £8,850 = +£1,300Land Rover Discovery 2.7 V6 Tdi SE, 06/06 plate, 30,000 miles: Jan £16,600 - Sept £20,000 = +£3400 | SECOND-HAND CAR PRICE RISES Peugeot 107 Urban 07/07 plate, 20,000 miles: Jan value £4,575 - Sept value £4,850 = +£275Ford Focus 1.6 Zetec 5dr: 06/06 plate, 30,000 miles: Jan £4,700 - Sept £5,625 = +£925VW Passat 2.0 SE Tdi 4dr, 06/06 plate, 30,000 miles: Jan £7,550 - Sept £8,850 = +£1,300Land Rover Discovery 2.7 V6 Tdi SE, 06/06 plate, 30,000 miles: Jan £16,600 - Sept £20,000 = +£3400 |
Professor David Bailey of Coventry University Business School said he believed the scrappage scheme would be short-lived. | Professor David Bailey of Coventry University Business School said he believed the scrappage scheme would be short-lived. |
Prof Bailey said: "The way it's going the scrappage scheme will run out of money in October, so we may see a reversal in the new car market." | Prof Bailey said: "The way it's going the scrappage scheme will run out of money in October, so we may see a reversal in the new car market." |
In April, used-car magazine Parker's reported that for the first time in the UK new cars were cheaper than used ones. | In April, used-car magazine Parker's reported that for the first time in the UK new cars were cheaper than used ones. |
The firm said the anomaly was caused by the dearth in used cars, combined with a recession-led fall in demand for new cars, which has forced carmakers to slash prices. | The firm said the anomaly was caused by the dearth in used cars, combined with a recession-led fall in demand for new cars, which has forced carmakers to slash prices. |
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