Value of used cars plummets

DESPITE high inflation, the price of used cars fell 1.5 per cent last year, figures reveal.

The average price of a second-hand vehicle in 2011 was £9,018 compared with £9,155 in 2010, according to research from the Auto Trader company.

Cars up to three years old – now in shorter supply due to recent dips in new-car sales – went for over 6 per cent more in 2011 than in 2010, but the price of vehicles aged over 10 years fell by an average of 6 per cent.

Auto Trader strategy director Tim Peake said: “Reduced new and used-car transactions, created by relatively weak consumer demand, is leading to lower overall retail prices for used cars.”