New figures have revealed that used car values grew at the start of the year, offering a glimmer of cheer for the car market.
The HPI Used Car Valuations Index showed that average values rose between December and January for all 12 and 36-month-old cars.
However, while the news may provide some cheer for the industry, the researchers warned against assuming that the market would continue its upward trend over the months ahead, because the new year traditionally sees an increase in prices.
But Martin Keighley, used car valuations expert at HPI, suggested that 2009 would be a "buyer’s market" for used cars, meaning that there could be an upturn in the number of people choosing to buy used cars.
"Mr and Mrs Average could be feeling far more comfortable in their jobs. In addition, they now pay less for their mortgage, fuel, food and clothes, which means they havent been this well off for a while," he said.
The HPI research backs up figures from British Car Auctions, which registered a £300 average increase in used car values between December and January.
Written by Barry Oakey