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Used car prices remain stable - CAP

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New figures released by CAP have shown relatively stable used car values across most sectors in the last three months, compared with the previous quarter, due to a balance between low stock levels and muted customer demand.

According to the CAP Used Car Price Index, 4x4s emerged to be the segment that witnessed an improvement in second-hand car values.

Figures also showed a decline in convertible values.

The used car pricing expert said the availability of second hand vehicles dropped overall, as the 2008 economic crisis had dragged new car production down.

There was also a drop in demand for used cars as consumers were hesitant to make purchases. This resulted in a supply-demand balance, which led to relatively stable used car values.

Mike Hind, of CAP, said: "Although there remains precious little economic good news and consumers remain nervous about making big ticket spending commitments, the positive message is that more stable used car values means slower depreciation for owners."

This would be useful in the present day as depreciation is the number one expense for most car owners, a fact that they tend to forget as they become increasingly concerned about other costs such as fuel and car insurance.

© Press Association 2011