The latest edition of the CAP Black Book has reported stability in the used car market, as supply and demand remain balanced.
CAP claimed that at the beginning of April, trade values of three-year-old vehicles with 60,000 miles on the clock increased slightly compared with the beginning of March across the board.
Allowing used vehicles to hold on to more of their value, the 'fragility' of the new car market has put an end to over supply. According to CAP, the stability in the used car and used car insurance market will continue throughout April.
It said: "The ending of official scrappage may well bring renewed focus by customers on used cars. Such an increase could be significant in its impact on late stock in particular.
"Because the exchange rate still does not favour the pursuit of volume for its own sake there is still a good balance of supply and demand. Along with the ongoing step back from short-cycle business this suggests that the balance could swing toward a significant shortage of late stock. In turn this could push prices up."
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