The past four months have seen a strengthening in Volvo UK’s used-car prices, following a change in strategy for disposal, the manufacturer has announced.
Traditionally, Volvo has sold cars that are six to 12 months old directly to its dealer network through closed auctions, but since October 2006 cars have been available through open auctions, with around 20 per cent being purchased by buyers outside the dealer network.
As a result of this boost in demand, increases of up to £900 have been noted on the price of used Volvo models between December 2006 and April this year.
Predictions on the manufacturer’s products have also improved, with research group CAP projecting that a Volvo S40 will retain 46 per cent of its original value after three years and 60,000 miles.
John Wallace, corporate sales and leasing manager for the automaker, said: "Our recent used-car performance demonstrates that second-hand buyers clearly welcome the opportunity to buy Volvo used cars and have paid very strong prices.
He added: "The high speed at which we have turned our cars into cash has also improved our used-car bottom line."
In this year’s Auto Express used-car awards the Volvo XC90 won the off-road 4×4 category, while the V50 and S60 were commended in the estate and compact executive segments.