In a move described by movers and shakers in the second hand car markets of the UK, it appears that instead of the expected 15%-a-year depreciation in used car prices that has become expected, in the last twelve months a total reverse of the situation has occurred. That means that the value of a second hand car has actually risen by £600 on average in 2009.

Two factors are reckoned to have contributed to this phenomenon: The first has been undoubtedly the Government’s scrappage scheme which was the major factor. Following not far behind was the decision by many of the UKs leading fleet owners to delay replacing their vehicles to 2010, which has caused a major dearth of second hand vehicles on the market.

In general, any second hand car is expected to depreciate in value by around 1.25% monthly. However a spokesman for the used car dealers association in the UK has announced that prices on the forecourt have risen by an average of 3% every month.

They report that cars under three years old have risen in value by up to 20% or even more depending on model and age

However this dramatic change in the status quo for the second hand car owner is not expected to continue to far into 2101, when the fleet owners eventually decide that they need to change their vehicles and the Government’s scheme will be long forgotten. However it will be good while it lasts, except for those who are buying a second hand car for the first time. If you can find one!

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Tags: British Economy, British Pound, Credit Crunch, Economics, Economy, Financial News, Money, Recession, Retail, scrappage scheme, second hand car, second hand vehicles, UK Economy, UK Recession