Industry News from Yes Insurance

The price of used cars has been through a turbulent 12 months but now seems to be stable, according to an expert.

CAP's Black Book is a guide to this area of the market and is used as a benchmark by the industry, the company said.

Although the period after Easter in 2008 saw levels drop sharply, an "unprecedented upturn" has been witnessed since the beginning of this year.

Contributing factors include a shortage of stock and extended leasing contracts, which reduce the amount of fleet cars on the market.

Dealerships and groups said the amount of used vehicles on their forecourts is up to 50 per cent lower than usual April figures.

"Used car trade prices have clawed back some of the value lost during the downturn - taking them back to November 2008 levels," CAP explained.

The organisation recently issued a statement regarding the new scrappage scheme, forecasting it to have a "limited impact" on the sector.

Are you buying or selling a car? Click here to find out what Honest John has to say.