Fashion gives way to reality as 4x4 residuals fall by nearly 4%
10/06/1998 in NEWS
Demands for space can now be met by MPVs which are coming on to the used market and as used 4x4s become more plentiful, prices are coming under pressure. The best performers in the sector tend to be the smallest, most 'car-like', such as the RAV4, or heavyweight 'farmers' favourites' like the Toyota Land Cruiser, Mitsubishi Shogun and Range Rover, which are seeing average depreciation.
As a whole, 4x4s have fallen in value year-on-year by 3.9%, compared with 0.9% for the car market overall. CAP has found mid-rangers to be the biggest strugglers. Since July last year a 1991 J-registered Land Rover Discovery 200 TDi three-door with 60,000 miles has slipped from a trade value of around £8,675 to £7,325, a fall of £1,350, twice the normal level of depreciation.
CAP publishing director Andrew Wilkinson said: 'A cliche it may be, but the closest many of these ever got to rough terrain was the supermarket car park humps. Because there was a large element of fashion, rather than practicality, that market was exposed more than others to changes in taste.'