Prices for three-year-old cars in the UK fell by 7.1 per cent over the 12 months to October 2002, according to the latest EurotaxGlass's European Fleet Index of residual values. The residual value trend in the UK in the most recent three months of the period was for prices to fall by 3.5 per cent.

Average residual values in the 12 European countries have fallen slightly - by 0.1 per cent compared to 12 months ago. The general European trend in the three months to October 2002, however, was for values to decline more sharply, by an average of 0.5 per cent.

Depreciation rates have not altered during the last three months. The average vehicle in the EurotaxGlass's Fleet Index retains 40 per cent of its original value. Diesels overall retain 43 per cent and petrol variants retain 38 per cent.

Again, there are wide variations across the 12 markets – but with the UK suffering the worst depreciation, with three-year-old cars holding on to only 33 per cent of their original price. Portugal has the lowest depreciation with cars retaining 49 per cent of their value after three years.