Cars that hit the crunch

Nov 17 2008 Ian Johnson

Cars that hit the crunch

THINGS are not looking good for three year old petrol cars.

HPI Used Car Valuations Index has reported a worrying decline in this area with depreciation for some models increasing from 27% to a shocking 30%.

But it is the three-year-old petrol MPVs and 4x4s that have yet again taken the biggest year-on-year tumble, with valuations now running at just two thirds of what they were this time last year. Incredibly petrol MPVs have now fallen 34.5 per cent and 4x4s, a wallet-busting 39.8 per cent.

Used car valuations have suffered with the year-on-year decline in October for all 12 month old cars increasing on average from over 20% to 24%.

But there are rays of hope peering through the gloom of impending recession.

Latest figures show twelve month old city cars are now seeing depreciation values slowing down.

But for the new car buyer a glut of vehicles on the market is forcing some spectacular price reductions.

A survey has revealed the average discount on a new vehicle is £1,932, but one mystery shopper managed to secure a deal with an internet broker for £8,568 for a new Citroen Picasso - 45% off its £15,616 list price. Another negotiated an £11,500 reduction on a £33,764 Jaguar XJ.