Its Been Confirmed Cars Are More Expensive
We mentioned this a few posts ago that the recession may send the prices of cars up with the lack of vehicles against the demand. Well it now has been confirmed by CAPS the company that publishes trade car price, stating that your car is increasing in value even whilst it is standing on the drive. Some vehicles that were extremely unpopular just 12 months ago, have increased in value the most with some 4×4’s increasing in value over £3000, not a small amount. This obviously has been compounded by the low prices last year.
This obviously affects the salvage market, as clearly more profit can be made from each car repaired. Many who have been used to really cheap salvage prices at auction now have to recalculate their actual costs against profit, with some just not wanting to pay more for cars. You tend to get used to prices dropping but not increasing. In fact this is the first time since records began that second hand cars have increased in value, except for some classic cars, or supercars.
Of course a pending question is how long will these high prices stay with us. For example it takes time to repair a salvage car, in this time is it possible that prices could drop back to normal levels again.
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