Move quickly to snap up used car bargains

The price of a used car is lower now than it has been for a very long time, offering car buyers the chance of a lifetime to nab their dream motor at an affordable price. But, warns the leading vehicle information organisation HPI, anyone thinking about grabbing a used car bargain should act quickly to benefit from the current great deals on offer, because they are unlikely to last for too much longer. The latest HPI Used Car Valuations Index reveals that used car prices are beginning to creep up.

Martin Keighley, HPI’s Used Car Valuations expert explains, “Overall, in the trade, we are seeing that some types of vehicles are showing signs of improved confidence, with the City, Supermini and Small Car types leading the charge. We are also seeing that some Luxury and 4x4 petrol models are showing signs of perking up. For the man on the street, this means that the value of these cars is on the rise, albeit they currently still represent an extremely attractive buy.”

The HPI Used Car Valuations Index saw month-on-month residual values rise for December to January for all 12 and 36 month old cars. Whilst those in the trade will not be surprised by this trend, which is usual for this time of year, knowledgeable buyers would be advised not to hang around whilst prices remain so low.

“Buyers are continuing to look for good condition, sensible mileage models, but demand means the most popular vehicles are getting thin on the ground. This is why in some cases, people need to act quick,” continues Martin Keighley. “However, the massive used car price reductions that we have seen over the last year, combined with falling fuel prices, means some larger vehicles are looking very cheap indeed to buy and run.”

Confirming that used car values still have some way to go before reach the higher prices we were accustomed to, year-on-year used car values continue to depreciate. The fall increased by 1.0% to -28.1% for all cars at 12 months and 0.8% to -33.9% for all cars at 36 months. Interestingly, the 12 and 36 month petrol sector saw values stabilize for the first time in many months.

Martin Keighley concludes, “Job losses continue to hit the headlines and many of us are worried whether we will be in work this time next year. But on the other hand, some people are now paying less for their mortgage, fuel, food and clothes. This means they haven’t had this much disposable income for a while and for those of you in this position, now is the time to bag yourself a used car bargain, just move quickly as good quality stock is getting scarce.”