According to CAP Black Book, used car prices are unstable because of low demand for used cars and a lack of good used cars on the market.
This means even if demand for a certain car is low, supply of that car could be even lower, meaning inflated prices for the car.
However, despite the unstable prices, the used car market is stronger than expected in the past month.
According to Black Book editor Tim Bearder, “As long as supply remains in line with expectations and retail demand is maintained somewhere around the reasonable levels currently reported, this month will be stronger than is often typical for the time of year.”
With November used car prices dropping by 1.5 per cent, it means a three-year old car with 60,000 miles on the clock will now be more affordable than it was a month ago.
Popular used cars such as used Ford Fiesta models and used Vauxhall Corsa cars continue to thrive in the UK in the used car market.
Poor economic conditions mean more customers are looking for the best used cars deals. Often, a car which is even a year old will offer significant savings compared to new cars.
Manufacturers such as Vauxhall have recognised this, offering its lifetime warranty to a second owner on all cars which are less than a year old and have travelled less than 30,000 miles.