Small Cars Lead the 2011 Used Car Price Recovery

LONDON--March 29, 2011:

“This year's used market will inevitably favour Superminis most because these days they are remarkably spacious and comfortable as well as economical to run.”

CAP: SMALL CARS LEAD THE 2011 USED CAR PRICE RECOVERY

CAP Used Car Price Index -- March 2011

Year on year changes in 3yr old car values compared with March 2010 *

STRONG RECOVERY in used car values during the first quarter of this year has been led by the smallest and most economical vehicles, according to CAP, the used car pricing experts.

Star performers in the current used car market are Superminis: Fiesta/Corsa size vehicles. The typical 3 year old Supermini is now worth an average 5.3% more than its exact equivalent, at the same age and mileage, a year ago.

In December 2010 a 3 year old Supermini was worth an average 6.7% less than its equivalent 12 months previously.

City Cars, such as Ford Ka and similar, are now on average only 1.2% behind where they were a year ago. This compares with -7.5% in December 2010.

At the other end of the size and economy scale, the average 4x4 is also worth more than 12 months previously, although off-roader values are now expected to fall back more rapidly than other car sectors. At an average of 11.2% more than 12 months previously, it is now believed that the long rise in 4x4 values has finally peaked.

Lower Medium cars: Focus/Astra size have also seen their year on year price performance improve from -5.1% at the end of 2010 to just -2% at the close of quarter 1 2011.

The other notable feature of this year's used car market is a shortage of high quality 3 year old vehicles. This offers the chance of high trade-in prices for consumers looking to swap their car.

Mike Hind, of CAP, said: "The good news for consumers looking to trade a good car in against a new one, or a younger used model, is that dealers are still crying out for high quality cars they can sell again. This is because there are too many poor condition, high mileage examples in the trade that require considerable investment to bring them up to retail condition.

"This year's used market will inevitably favour Superminis most because these days they are remarkably spacious and comfortable as well as economical to run."

ends

* Market price performance in the CAP Used Car Price Index is benchmarked at 3 years old. Actual car values will vary according to mileage and retail prices will vary according to the purchase source. Because cars are benchmarked at one specific age this chart does not display actual depreciation/appreciation over time.

CAP used car pricing information has been trusted by motor trade professionals for more than 30 years. The company provides trusted and accurate pricing and technical information on cars, vans, motorcycles and trucks to the UK automotive industry every day. As well as helping dealers, fleet operators, insurers, vehicle manufacturers and finance providers, CAP information also operates at the heart of many leading vehicle marketing websites and car sales portals, including Britain's largest, AutoTrader, helping consumers safely make the best informed decisions about their purchase choices.