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CAP Used Car Price Index shows that used cars are becoming more affordable

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Used cars are becoming increasingly more affordable - that's the latest findings from the CAP Used Car Price Index.

The figures show that values are lower than 12 months ago  for the first time this year, with the fall in values accelerating. The cars from two further sectors are now typically cheaper than a year ago. In August average values for upper medium and small executive models joined the list of car types that cost less now than a year ago.

It is smaller cars that have seen the largest year on year reductions in value so that a typical three year old City Car or Supermini is now almost 10% cheaper in the trade than the exact equivalent vehicle in August 2009.

Cars across all sectors have seen their values reducing since April this year, gradually wiping out the price rises that occurred during much of 2009. The strongest increases then were in the 4x4 sector and average values there still remain 11% higher than a year ago.

Mike Hind of CAP said: "Taking the used car market as a whole, values are now on average almost 3% lower than in August 2009. It is the first time this year that average values have been lower than 12 months previously. But it does mean that this is a better time to buy a used car - especially a small or medium family car - than we have seen for a couple of years."

 

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