“We anticipate no significant growth in registration volumes over the next few years and the continued economic pressure will keep used car demand stable at best. We believe this may end the used car price volatility which has characterised the last three years with the market entering a more stable period for prices.”

The used car market has been particularly volatile over the past two years with massive falls in prices paid for used vehicles in late 2008 countered with significant rises in late 2009.

According to latest BCA data, average used car selling prices recovered strongly last year rising from £4,868 in 2008 to £5,422 in 2009.

This was in part down to the shortage of younger used cars for sale because many fleets and leasing companies postponed replacement of their cars.

With the impending shortage of supply, this pattern could be replicated through to 2014.

Predictions suggest that by 2012 there will be around 2.5 million fewer cars aged below five years coming to the used vehicle market.

“There has been a pan-industry awakening that the overall stock of lower-mileage ex-business used cars was, and is likely to be, severely reduced over the next few years,” said Cooke.

“Forecast new car and LCV sales for the next five years, as the country passes through a period of austerity, may well create a surprisingly buoyant used vehicle market driven, on the one hand, by some private buyers moving from buying a new car to a less expensive used one and, on the other, a relative lack of supply of younger used cars.”

Relative stability appears now to have returned to the used vehicle markets with seasonal trends returning.

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