Plan to bypass classic car MOTs

04/11/11

By Emma McFarnon

The fact that the number of new cars in production has fallen may not be an entirely bad thing, as it is helping to maintain strong used-car prices.

Car pricing experts CAP has revealed that a reduction in the number of used cars available overall is helping to keep prices stable. This tumble stems from the 2008 recession and the subsequent credit crunch, which saw the number of new cars being produced fall.

Consequently, despite a gloomy economic climate in which consumers are wary of making big purchases, used-car prices were firmer across most sectors between September and November than the previous three months.

Mike Hind of CAP said of its Used Car Price Index findings: "Although there remains precious little economic good news and consumers remain nervous about making big ticket spending commitments, the positive message is that more stable used-car values means slower depreciation for owners.

"With headlines so often focused on fuel and insurance costs it is easy to forget that depreciation is the number 1 expense most car owners have to live with."

The index also pointed to an increase in the value of 4x4s, while that of convertibles plummeted.