Used cars are currently depreciating in value at a faster rate than during the recession of the early 1990s, the leading authority on the matter has revealed.
According to the latest figures published by EurotaxGlass, publishers of the industry car price bible Glass’s Guide, a typical three-year-old vehicle currently retains around 38 per cent of its list price.
In comparison, in 1992, this figure stood at 40 per cent, while at that time inflation was almost ten per cent.
With the rate of inflation currently significantly lower than in the past, such price drops are not being countered, the managing editor of the company Adrian Rushmore has explained.
"Between 1991 and 1992 manufacturers increased list prices by around eight per cent, and this often helped to ‘drag up’ used car prices," he said.
On a more positive note, Mr Rushmore added that new car sales remain stronger than in the time of the last recession, though he conceded that an economic turnaround is unlikely to happen any time soon.