CAP Used Car Price Index shows improvement on the summer

November 2011 – for immediate release

CAP Used Car Price Index – September to November 2011

Changes in 3yr old car values compared with the period June to August 2011

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USED CAR PRICES were firmer across most sectors between September and November than the previous 3 months, according to the used car pricing experts, CAP. The CAP Used Car Price Index also reveals an increase in values for 4x4s over the period while convertibles are hitting the doldrums.

A reduction in the number of used cars available overall, at the benchmark 3 year old point, is helping to keep prices relatively stable in most cases. This stems from the credit crunch and recession of 2008 which saw a dramatic reduction in the number of new cars produced and registered.

This low volume of available stock is helping to compensate for muted retail demand, due to consumer caution.

Superminis are benefitting from the relatively stronger demand for running cost economy and fell, on average, by just 1.9% between September and November. Lower medium – or small family – cars are also enjoying similar demand, falling in value by an average of just 2.6% over the same period.

Also worthy of note are upper medium – large family – cars, which have historically often been especially vulnerable to oversupply and consequent heavy depreciation. These vehicles saw an average reduction of just 2.3%.

The weakest performers over the past 3 months have been convertibles, which are notoriously vulnerable to seasonal fluctuations in demand, which are down by an average 9.6%.

Returning to favour, following a period of significant reductions over the summer months, are 4x4s with an average increase of 3.2%.

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. With headlines so often focused on fuel and insurance costs it is easy to forget that depreciation is the number 1 expense most car owners have to live with.

“Thanks to low volumes of cars available, even the usual suspects for heavy depreciation, such as large family cars and popular executive models, have been seeing relatively strong value retention as we head toward the end of the year.

“Indeed, many used car values moving into November have been unusually strong at a time when historically prices have tended to be much weaker.”

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* Notes for editors: Market price performance in the CAP Used Car Price Index is benchmarked at 3 years old. Actual car values will vary according to mileage and retail prices will vary according to the purchase source.

For further information contact Mike Hind, Communications Manager, CAP on 0113 222 2044 / 07710 152030

CAP used car pricing information has been trusted by motor trade professionals for more than 30 years. The company provides trusted and accurate pricing and technical information on cars, vans, motorcycles and trucks to the UK automotive industry every day. As well as helping dealers, fleet operators, insurers, vehicle manufacturers and finance providers, CAP information also operates at the heart of many leading vehicle marketing websites and car sales portals, including Britain’s largest – AutoTrader – helping consumers safely make the best informed decisions about their purchase choices.

CAP, Capitol House, Bond Court, Leeds LS1 5EZ
Telephone: 0113 222 2000 Facsimile: 0113 222 2001 www.cap.co.uk

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