The rapid slide in second hand car values has stopped according to the latest EurotaxGlass's residual price index and are now experiencing a “dramatic recovery”.
RVs have reduced by 1.9% in the last 12 months, but the index reveals that all sectors of the used car market appreciated by 4.8% in the last quarter, which is, according to EurotaxGlass's is evidence of the slight market recovery.
The index, which is compiled by eurocarprice.com and published quarterly at www.eurocarprice.com measures year-on-year movements in the value of two-year old cars in 13 European countries.
Peugeot has seen the biggest gains in the UK. The 106, 306 and 806 appreciated by 12.7%, 5.6% and 5.4% respectively.
The biggest losers were Cadillac, Nissan and Toyota which saw their Seville, Micra, Celica and MR2 models reduce in value by 24.5%, 21.4%, 19.1% and 19% respectively.
Luxury models have seen the biggest increase, rising by 12.1%, boosted by a series of new model launches.
The MPV sector saw a rise of 1.1%. The sports coupe and executive saw the biggest fall in value of 14.7% and 6.5%.
The highest rise in the last three months has been in the small car sector which went up 4.5%.
Paul Jarvis, Glass's Information Services' managing director, said: “We have seen a dramatic recovery in the used car market since the start of the year and it is clear there was considerable pent-up demand resulting from the new car prices' inquiry and the ensuing price changes.
“This demand is only now being released and whilst we will continue to see seasonal price adjustments throughout the rest of the year, we do not expect them to be as severe as the industry experienced in the previous few years.”
Residual value winners and losers in the UK in the last 12 months
Mercedes S Class +26.6%
Peugeot 106 +12.7%
Land Rover Discovery +10.4%
Vauxhall Frontera +8.8%
Renault Espace +8.4%
Chrysler Voyager +7.8%
Peugeot 306 +5.6%
Peugeot 806 +5.4%
Chrysler Grand Cherokee +5.0%
Vauxhall Corsa +3.2%
Cadillac Seville –24.5%
Nissan Micra –21.4%
Toyota Celica –19.1%
Toyota MR2 –19.0%
Ford Cougar –15.9%
Renault Safrane –15.1%
Audi A8 –14.4%
Jaguar XJ Series –14.4%
Fiat Seicento –13.9%
Citroen Saxo –11.7%