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Used cars 'still in demand'

Wed, 27 May 2009
The used car industry is continuing to see plenty of demand, according to the latest figures, which have revealed average prices increased again during May.

According to the latest figures from the HPI Used Car Valuations Index, used car prices have now reached levels last seen in September 2008, before the global economic slump brought the value of both used and new cars crashing.

While the new car market continues to struggle, however, the used car sector has rallied over the course of 2009 as more people look to downgrade and purchase a used car instead of splashing out on a new model.

People thinking about selling a car could find they are now able to get much more for their vehicle than in previous months.

"The economic downturn seems to have levelled out, or at least be bottoming out, which has led to cautious optimism amongst the traders and dealers of the used car market," said Martin Keighley, used car valuations specialist at HPI.

Motorists with smaller vehicles who are looking at selling a car are also likely to find significant demand for their model, as Mr Keighley explained small cars with low mileage "continue to make very strong money at auction".

Recent studies from Glass's and the British Car Auctions organisation have suggested average used car values will have exceeded those seen at the end of 2008 by the end of this year.

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