Used car values likely to exceed 2008 end-of-year values

A shortage of used cars will boost residual values through to the end of 2009, according to Glass’s.

Glass's forecasts that the value of the typical used car will end the year 16% higher than in December 2008.

“An average three-year-old car will be worth £5,100 in December this year – some £700 more than a similar car would have changed hands for at the end of 2008,” said Adrian Rushmore, managing editor at Glass’s.

He said there is and expectation that demand from retail buyers for used vehicles will remain relatively strong.

“If retail sales of used cars are down by no more than 10% this year, prices should not collapse,” said Rushmore.