Smaller cars lead the field as low volume keeps a lid on depreciation

CAP Used Car Price Index - June to August 2011

Year on year changes in 3yr old car values compared with June to August 2010

LATEST FIGURES FROM used car pricing experts CAP reveal lower used car depreciation this summer than during the same period last year. The CAP Used Car Price Index also confirms that smaller, more economical cars are leading the field in terms of value retention.

The most striking example of improved performance is in the City Car sector, where average depreciation between June and August was just 0.9% compared with 7.5% during the same period in 2010.

Superminis are also holding their value better than a year ago with average depreciation of 4.1% over the past quarter, compared with 8.3% a year ago. It's the same story for Lower Medium (or small family) cars, which have depreciated on average by 3.5% when last year's figure was 6.4%.

This year's market is seeing prices bolstered by restricted used car volumes. This is balancing the negative impact of tough economic conditions and fragile consumer confidence to prevent the kind of used car values 'meltdown' seen when the credit crunch struck in 2008.

Mike Hind of CAP said: ""The CAP Used Car Price Index confirms that demand is generally strongest at the smaller end of the market and this has resulted in slower depreciation this summer.

"With no economic recovery on the horizon it seems certain that smaller and more economical cars will continue to depreciate more slowly than 'petrol guzzlers' as running costs overtake image in the priority list for used car buyers.

"The other significant factor influencing used car prices in general is relatively low volume, which is partly a result of the collapse in new car registrations over the past 3 years."

  
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.

Follow MikeH_CAP on Twitter
Find Mike Hind on Linked In http://uk.linkedin.com/in/mikehind

CAP used car pricing and technical 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

Tags: