Average used car prices increased in February despite the ongoing challenging economic conditions, according to British Car Auctions (BCA).
Prices rose 3.7% to £6,244, the 3rd highest monthly average used car value on record at BCA. Year-on-year average prices are up 4.3%.
Last month Cap warned of the lack of good stock in the marketplace, which had been propping up values.
“There is a shortage of good quality used cars generally and this having a noticeable effect on the average price at our auction centres” said 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,” he said
Naylor said businesses and company fleets are holding onto their cars for longer, because of economic stresses and this was influencing 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.
“However, buyers remain as choosy as they ever have been, and used cars need to be in good condition to get the best price.
“With money tight for many , 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.”
Source: BCA / Motor Trader