Used cars 'now gaining in value'

[Barks]

Second-hand cars are gaining rather than depreciating in value due to a shortage in supply, an industry-wide research company has found.
CAP Motor Research Ltd, which provides valuation data to the car industry, said the usual 15%-a-year depreciation of used car prices has been reversed.
Companies delaying replacing their fleets and the government scrappage scheme has led to a shortage in supply.
This year the average family car has increased in value by about £600.

Peugeot 107 Urban 07/07 plate, 20,000 miles: Jan value £4,575 - Sept value £4,850 = +£275
Ford Focus 1.6 Zetec 5dr: 06/06 plate, 30,000 miles: Jan £4,700 - Sept £5,625 = +£925
VW Passat 2.0 SE Tdi 4dr, 06/06 plate, 30,000 miles: Jan £7,550 - Sept £8,850 = +£1,300
Land Rover Discovery 2.7 V6 Tdi SE, 06/06 plate, 30,000 miles: Jan £16,600 - Sept £20,000 = +£3400

http://news.bbc.co.uk/1/hi/business/8251920.stm

I did actually explain the economics behind this to many of you a few months back but you all said I was talking rubbish despite a perfectly reasonable explanation. In fact some people went as far as taking the mick at such an absurd and ridiculous suggestion. Anyone with even common sense let alone sound economic understanding can appreciate that a shortage in demand of new cars (due to the recession) results in a shortage of supply of new cars, and eventually second hand cars thus possibly leading to a price increase in used cars as demand exceeds supply. So read the statistics for yourselves

 

[Barks]

Quite a high horse you're sitting on there old chap. If I remember correctly NO ONE opposed the idea of lower supply = higher prices.

edit - awesome, my Passat will hopefully be worth something now!

Well the whole argument stemmed from an article saying new cars were so heavily discounted they were becoming cheaper than their used equivalents and some people didn't even believe that despite the statistics and the parkers article.