Used car bargains in the credit crunch

Used car price specialists EurotaxGlass's has been tracking the fall of values of used cars during the credit crunch. The tough economic conditions means that EurotaxGlass's is describing used car prices as “historically low”. That means there are some real bargains for those looking to buy, with some sectors of the used car market seeing falls of 31% over and above their standard rates of depreciation compared to figures at the start of 2007.

The drop in used value has hit the various sectors of the marketplace differently. Owners of compact petrol-powered MPVs will be hit hard if they try to trade in their vehicles, as used prices have dropped on average £1,600 more than they would usually do. Similarly, cars in the lower-medium segment have seen their values fall by an extra 29% over the normal rate of depreciation. That means typical prices for a Ford Focus or Vauxhall Astra are showing an additional drop of £1,925 in value over their standard depreciation rates since the first quarter or 2007.

The reductions in value mean that buyers are winning in the used car market, EurotaxGlass's noting a growth in demand from buyers looking for bargains. Adrian Rushmore, Managing Editor at EurotaxGlass's says: “The good news for consumers is that the falls in trade values are being translated into lower asking prices on the forecourt, and there have been clear signs over recent weeks that retail demand has improved as a result.” However, not all cars will be cheaper as small city cars are bucking the downward trend. Thanks to their desirable low running costs used prices for city cars remain unchanged with no loss in value.

Kyle Fortune