Fewer used cars has led to an increase in their value during 2009. Vehicle valuation data provider CAP Motor Research Ltd., responsible for vehicle value data to the motor industry, has said that normally there would be around 15% per year depreciation in use car values but this trend had been reversed in 2009.

What normally happens in the used car market is a steady depreciation. But 2009 has seen used car prices actually increasing month to month by about 3.5%. This is resulting in significant increases in used car valuations.

This is good news for those wishing to sell their cars but not so good for people looking for a bargain. The increase in the prices of used cars throughout 2009 is completely unprecendented. Some used car prices have increased by as much as 25 to 30%.

Some are saying that the effects of the car scrappage scheme will be short-lived. When funds for the car scrappage scheme come to an end in October it is expected that this trend in used car prices will be reversed.

The car scrappage scheme was introduced in an attempt to boost the ailing auto-industry. For many car manufacturers the UK car scrappage scheme has been a great success. Government incentivisation has prompted those who were considering a replacement car to choose a new model.

Earlier this year it was reported that new car prices were actually lower than used car prices in the UK. This was caused by a falling demand for new cars due to the recession and fewer used cars coming onto the market.

There has also been a shift in the way that UK drivers are financing their transport needs with many opting for cheap lease car deals or attractive van leasing deals rather than outright purchase.

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