According to the latest Glass’s used car market index, the average* three-year-old car (2003 ’03-plate with a typical 36,000 miles) ended the first quarter of this year worth £6,750. Despite the improvement, this figure is still £275 lower than at the same point last year.
EurotaxGlass’s, the publishers of the report, says values fell by 1.7%, or £125, during the first three months of the year, and predicts a further drop of 1.5% by the end of April, to an average of £6,650.
"During the first quarter there was an uplift in buying activity amongst used car retailers, while sales from the forecourt have avoided the worst of the decline seen in the new car market," said Alan Cole, editor at Glass’s market intelligence service.
"Trade demand has been largely matched by retail demand, with most customers focusing on used cars that they perceive as representing good value for money," he said.
Cole also highlighted that the used car market has been ‘spurred-on by a discernable increase in confidence amongst retailers, which was lacking at the end of last year’.
"Many of the auctions continue to welcome trade buyers they have not seen for some time and franchised dealers made more frequent visits. Three-year-old cars are still favoured, and supply here is only just keeping pace with demand," added Cole.
(* The ‘average’ value of a used car (at one, three and five years) referred to in the Index is based on collections of representative models that are the best sellers in each market segment. There are typically 70 examples in each basket. Values are tracked for one registration plate for the whole period, but only for models that were available throughout, thereby avoiding fluctuations due to introductions and deletions.)