ACCORDING to the latest quarterly Glass’s Car Market Index report, the trade value of the average three-year-old vehicle (Y-plate with 36,000 miles) is now £7,423.

Assessing the UK’s new and used car market over the last quarter (April-June 2004), the Index reports that the value of this typical used vehicle has fallen by 5.2 per cent, or £440, since the end of March.

Glass’s says this is a higher rate of depreciation compared to the first quarter of the year, although values themselves are still higher than in the second quarter of 2003. Compact MPVs that have suffered the greatest falls in their value over recent months.

Glass’s predicts current rates of depreciation may accelerate due to higher interest rates, fuel prices and a degree of growing uncertainty about the housing market. Glass’s predicts a 2.5 per cent fall in the value of the average three-year-old Y-plated car during July, and suggests a possible increase in the rate of depreciation over the coming calendar-year quarter.

The full report is free – just email: marketing@glass.co.uk to request a copy.