VALUES of higher mileage cars continue to fall as customer demand migrates towards younger, fresher used cars, says Glass's Information Services.

Adjusted mileage penalties in Glass's Guide to Used Car Values have been steadily increasing to reflect the market trend.

Adrian Rushmore, managing editor, said: "Mileage penalties are much greater now than they were two or three years ago. This reflects a shift in consumer demand. Used cars are cheaper and the cost of borrowing is much less, so people find they can afford something younger, fresher and with lower mileage. Manufacturers are producing vehicles that are increasingly durable, but this is clearly having no effect on the purchasing patterns of car buyers.

"A factor influencing the fall in used car prices is the greater affordability of new models. Many manufacturers are currently offering price cuts and attractive finance packages on their new cars in order to maintain high levels of sales growth.

"This is having a predictable knock-on effect on values of used models, with higher mileage vehicles coming under the greatest pressure."