How the weather affects your car’s value

It’s taken some time but the sun is shining at last and ‘experts’ are predicting a scorching summer.

However, being Brits we know that any long range weather forecast should be taken with a pinch of salt.

And if you’ve ever wondered whether the weather affects car prices – the answer is ‘yes’!

According to Chris Crow, chief editor at car pricing experts CAP, an analysis of used car values suggests that the better the weather, the higher prices are in the used car trade market.

Writing in leading trade journal AM magazine, Crow says it’s not only convertibles that shine when the sun is out – the rest of the market does too.

He analysed used car values for two years in which the economic circumstances were similar but which saw very different total hours of sunshine.

He said: “I picked 2002 and 2006 because of the similarities in the economic climate, with GDP growth running strongly for the UK at 2.6%, inflation below 3% and new car registrations north of 2.3 million units.

“But the used car market was stronger in one of those years – and CAP’s analysis suggests that this was down to the weather.

“Both 2002 and 2006 began with similar hours of sunshine all the way through to the month of May. However, in June 2006 there were an additional 60 hours of sunshine and it proved to be the warmest July since 1976 – enjoying a staggering 115 additional hours of sunshine over the same period in 2002. By September the sunshine hours fell into line with 2002 but it was nonetheless the warmest September on record. So by all accounts 2006 was a cracking year for British weather.

“And it was also a cracking year for strong used car values, which supports what dealers often tell us – that the better the weather, the stronger the demand for used cars.”

Of course, you could always do the sensible thing and lease your car to save a packet.

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