The latest data from British Car Auctions (BCA), shows that although the average value of used cars climbed by over £160 during May, fleet car values recorded a fall of 1%.
The bulk of the increase was felt in the budget sector as dealer part-exchange cars rose in value by nearly 3%.
Values across the board improved to £5,790 in May from the £5,626 recorded in April, - a £164 increase that was equivalent to 2.9% gain. It is the highest monthly average value recorded since February of this year. Year-on-year, May 2011 is £134 (2.3%) ahead of the same month in 2010. Sold volumes improved by a significant 9.2% compared to April.
BCA's communications director Tony Gannon commented "Buyer confidence notably improved in May following the very disruptive trading conditions experienced at the back end of April. May had the feel of a typical late spring/early summer marketplace, with some price pressure but lots of interest for the most desirable vehicles. Conversions have improved and supply and demand is reasonably well balanced.
"However, the continuing economic pressures on household budgets should not be ignored. Rising inflation means costs - particularly on household essentials and fuel - are a major concern for families on fixed budgets meaning it is not the most conducive set of conditions to contemplate buying a replacement or ‘new' used car. The latest report from the British Retail Consortium highlights this, saying shoppers bought fewer items across the board in May, with sales of big ticket items falling."