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CAP trade watch: Car prices take a fall

One almost universal truth is that used car prices have reduced over the past decade.

To more consumers, the car has become a commodity rather than an object of desire. And the economic climate in the UK has changed considerably.

We are now in a world of relatively low and stable interest rates, strong employment and good standards of living and there are also many ways consumers can spend their money.

Ten years ago no one had broadband, mobile phones were reserved for the wealthiest, satellite TV was new and anyone with a computer in the home was considered a geek.

And house prices were low so mortgage repayments did not syphon away as much of a person’s income.

Cars are better today than ever – more reliable, safer, less polluting, more comfortable and more fuel efficient. Despite this people pay less for their used car than ever.

Here are some comparisions of current values with those of the Nineties:

Ford Mondeo
1.8 LX 5-door 1.8 LX 5-door
Price new 1993 £13,380 2003 03 £14,440
Used price* 1996 £4,975 2005 £4,075
Vauxhall Astra
1.4 LS 5-door LS60 1.4 5-door
Price new 1993 £9,690 2003 03 £3,425
Used price* 1996 £4,400 2006 £3,425
318i SE 4-door 318i SE 4-door
Price new 1993 £17,400 2003 03 £20,720
Used price* 1996 £9,424 2006 £8,600

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