The latest sales data from British Car Auctions (BCA), shows that average used car values continue to rise, despite the continuing difficult economic conditions.
The figures show that average used car values increased in February, climbing from £6,040 to £6,244 – the third highest monthly average used car value on record at BCA. The £204 rise was equivalent to a 3.7% improvement, month-on-month, while the average value is also ahead year on year, by £259 (4.3%).
“There is a shortage of good quality used cars generally and this having a noticeable effect on the average price at our auction centres” explained Tim Naylor of BCA. “The down-turn in new car sales which took hold in 2008 means there are fewer used cars coming back into the market.”
“In addition, many businesses and company fleets are holding onto their cars for longer, undoubtedly because of economic pressures and this is also affecting supply.”
According to Naylor, values stepped up last September and have remained at higher levels since then. “In the last six months, BCA has reported the three highest average monthly values on record,” he added.
He continued “However, buyers remain as choosy as they ever were, and used cars need to be in good condition to get the best price. With money tight for many motorists, there is a reluctance to purchase a vehicle in poor cosmetic condition or needing repair because they are concerned about the additional costs this represents.”
Naylor concluded “Used car buyers will always expect value for money, because buying a car represents one of the biggest purchase decisions many of us make.”