Fleets disposing of a typical 51-plate used vehicle can expect to achieve about £6,910 now, £200 less than the same-age car disposed of during the same period last year. The latest quarterly Used Car Market Index from Glass’s suggests that a seasonal uplift in used car values experienced during January last year will not be repeated this year.
It predicts that values achieved for most ages and types of used car will continue to weaken at a modestly increased rate during much of the rest of the year.
The index analysed residual values over the period October to December and found that the typical used car would have lost £233 in its trade value over the period, a fall of 3.2%. It blames the weaker values on factors such as a fall in consumer demand and increases in used car availability.
Glass’s editorial consultant Alan Cole said: ‘Market demand for three-year-old cars continues to be heavily influenced by the prevailing economic conditions. With general inflation well under control, it is likely that current interest rates have peaked. Once consumers become accustomed to this, buying confidence will return, though at a level lower than in 2004.’