Fleet News

Used prices continue to tumble

PRICES of used cars continue to tumble according to two separate pricing indexes released this week, although one suggests the heat is off upper medium sector values. The CAP Index, which monitors Britain's new and used car prices, says used car prices have dropped an average 5.3% this month compared to December last year. However, the one bright spot is that the decline is not as steep as the average 5.9% fall last month compared to November 1998.

The biggest falls, according to the CAP Index, are in sports cars (down 11.2%), executive cars (down 8.6%) and 4x4s (down 8%).A CAP spokesman said: 'This reflects an even greater priority placing on economical motoring, particularly by used car buyers.'

Bucking the trend slightly are upper medium sector cars (down 2.6%), which are currently depreciating most slowly. But, said the spokesman: 'This represents a typical natural market adjustment following previous big declines.' Elsewhere lower medium sector cars value have tumbled 4.3% and superminis are down 5.1%.Meanwhile, three-year-old used cars have fallen by up to 13.9% year-on-year, according to the monthly survey issued by the Alliance & Leicester. Average used car prices for three-year-old cars fell 5.7% from October 1998 to last October, according to the latest price index published this week.

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