Fleet News

Used car woes continue

Used cars are currently losing value at a faster rate today than they did during the height of the last recession in the early 1990s.

According to EurotaxGlass’s, a typical three-year-old car today retains around 38% of its list price – 2% lower than in 1992 when bank base rates were at 15% and inflation was approaching 10%.

“Between 1991 and 1992 manufacturers increased list prices by around 8%, and this often helped to ‘drag up’ used car prices,” explained Adrian Rushmore, managing editor at EurotaxGlass’s.

“By contrast, during the past year new car list prices have increased by little more than 2%, and the general absence of inflationary ‘relief’ means that used car values have been more susceptible to pronounced month-on-month falls as demand has declined.”

 

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