New Year to see trade-in values rise, say used car pricing experts CAP

December 2010 – for immediate release CAP Used Car Price Index – December 2010 Year on year changes in 3yr old car values compared with December 2009 * HIGH QUALITY used cars will command stronger prices early in the New Year, as availability of stock dwindles according to CAP, the used car pricing experts. It means consumers looking to trade in clean, well-maintained vehicles can expect enthusiastic offers from dealers looking to keep their forecourts fresh. The news comes as figures from the CAP Used Car Price Index reveal that the fall in second hand car prices compared to last year slowed in December. Despite the fact that 3 year old cars in most sectors have been trading for most of this year at lower prices than their exact equivalents a year before, the gap has reduced in recent months. Only two vehicle sectors enjoy higher values than last year, with 4x4s continuing their remarkable performance to end the year worth almost 10% higher than in December 2009. However, more mainstream vehicle types have moved closer to last year’s prices with a typical small family car now trading at only around 5% less than last December and a large family car just 4.1% lower. The overall market has taken a step forward by standing just 4% lower than 12 months previously, compared with 6.6% in September. CAP believes that used car trade values will strengthen during the early part of 2011. Despite growing economic austerity and poor consumer confidence, low supply into the used car market will mean the possibility of demand still outstripping supply in the case of good quality used cars. Mike Hind of CAP said: "The New Year will be a good time to trade in a high quality used car. Our research shows that dealers are currently paying very strong prices to keep their stock levels up and that is unlikely to change any time soon.” ends * 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. Because cars are benchmarked at one specific age this chart does not display actual depreciation/appreciation over time. 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.u