Don't count on discounts

Jul 7 2009 Matt Tumbridge

NO one can sell cars in the current recession, right? Well, no, not really. In the used car market there is more likely to be a supply problem soon and as a result prices are very firm.

What's happened is big companies and car leasing organisations have stopped buying so many new cars. Instead they are keeping their current cars longer. Whereas before these bulk buyers of new cars off-loaded their cars quickly creating lots of nearly new used cars, now comparatively little is entering the market.

So, don't be surprised when you go into a dealer that they don't seem too keen to give you a knock-out discount. If you want a cheap car, then you need to pore over your price guide and pick specific models of car that have had high depreciation over the last few years, but are now settling down.

Here are three small family cars that caught my eye in the latest Used Car Expert magazine.

Jaguar X-Type

Interesting to drive and lots to choose from. Great badge and increasing numbers coming from company fleets and out of warranty so prices dropping.

Most economical: 2.0D - 50.3mpg

Best used buy: 3.0 V6 SE - big engine means low prices.

UsedCarExpert.com fault checks: 19

Used Car Expert price guide: A 2.0D X-Type from 2004 with average mileage of 56,000 miles will be around £7,000, having lost £10,000 in the previous four years. Over the next year, you should lose less than £800.

Mazda3

If you don't want to look like everyone else, want performance, reliability and value then the Mazda3 is worthy of a test drive.

Most economical: 1.6D - 56mpg

Best used buy: 1.6 TS

UsedCarExpert.com fault checks: 10

Used Car Expert price guide: A 2005 1.6D with 50,000 average miles will be half the price of a new car at £6,100.

Saab 9-3

Distinctive and fashionable styling without being controversial. Like its predecessor the 9-3 has an excellent balance of performance refinement handling and comfort.

Most economical: 1.9 TiD - 50mpg

Best used buy: 2.0t Vector or 1.9 TiD

UsedCarExpert.com fault checks: 12

Used Car Expert price guide: A 2004 1.9 TiD Vector with 56,000 average mileage will be £7,000. £11,000 less than the new price.