4x4s now 'worthless' in part exchanges

Dealers are refusing to take 'worthless' gas-guzzling 4x4s in part exchange amid plummeting values for second-hand cars.

They say some are worth more as scrap as demand for steel soars.

Used car values generally are set to drop by 12% between now and Christmas, experts warned yesterday.

A three-year-old family car worth £5,000 will drop by £600. That means it is losing around £5 every day - leaving many owners spending more for it in repayments than it is actually worth.

Experts at price guide Parkers say the slump is the result of the Government's controversial proposals to hit millions of drivers with backdated car tax increases of up to £245, which they say have 'skewed' the market, and the soaring price of fuel.

The worst losers are the biggest 4x4s. Parkers' car-price expert Simon Harris said: 'These are proving impossible to part-exchange. There's no demand for petrol off-roaders and resale values are plummeting.

'Increasing fuel prices and the prospect of owners being liable for double the amount of road tax on certain high fuel consumption models means used car buyers are more wary before deciding on their next purchase.

'There is no appetite at present for thirsty 4x4s that would typically cost £100 or more to fill up with petrol as fuel prices continue to soar, and become liable for more than £450 a year in vehicle excise duty by 2010 for models currently two years old. It effectively means these vehicles are worthless. Dealers don't want to touch them.'

Andrew Harrison-Smith, owner of Peterborough-based independent Land Rover specialist Nene Overland, said: 'Values for big petrol-engined 4x4s are about £3,000 or perhaps even £4,000 lower than for the diesels.'

Sue Robinson, director of the National Franchised Dealer Association, confirmed some dealers are refusing to take in certain cars.

She said: 'The market for 4x4s has become tougher following the Government's announcement of revised vehicle excise duty rates for higher-polluting cars.' Adrian Rushmore, managing editor at EurotaxGlass's car price guide, predicted a 12% drop in used prices between now and Christmas.