According to a new study conducted by the publisher of Glass’s Guide to Used Car Values, the value of used cars in 2006 declined slower than usual annual rates, bucking a downward trend started in 2004. The relatively positive finding affected most used cars, according to EurotaxGlass’s.

According to the managing editor at the company, Adrian Rushmore: A number of contributory factors influenced the improvement in values. The mini consumer boom was at its height in 2003 and, given that the normal period of used car ownership is just over three years, a proportionally higher number of people considered a change last year, although a significant number deferred their decisions on financial grounds. Furthermore, the declines in residual values that we have witnessed over the last 10 years have persuaded more owners that a used car now represents good value for money .

The supply of used cars also has an influence on the trend. Rushmore concluded: New car registrations have been easing back since 2004. The decision of some major carmakers, notably Vauxhall, to reduce low-margin sales to vehicle rental businesses has also affected the availability of used car stock . The more cautious approach that many consumers are now taking towards their spending looks set to continue, especially when it comes to higher costs items.