A shortage of good quality used cars at auction is pushing up prices, according to the latest BCA Pulse report.
The July average value was 9.7% or £547 up on July last year, ex-fleet cars were up 15% and part-exchanges 10.3%.
BCA communications director Tony Gannon said values were rising because of a shortage of good stock.
“It might seem counter-intuitive to report that used values have apparently climbed so sharply year-on-year, despite the continued challenging economic situation and relatively weak retail environment.
“However, supplies reaching the wholesale used car market are quite significantly down on the peak seen four to five years ago. The combination of lower new car sales and the tendency for vehicle owners to extend their replacement cycles simply means less stock is available to be sold.”
Gannon said the combination of lower new car sales and the tendency for vehicle owners to extend their replacement cycles also meant fewer cars to sell.
“The real shortage is of good quality, ready to retail used cars, which is leading to fierce competition and generally rising values for the best examples reaching the remarketing arena,” he added.
BCA said the shortage of stock was a long term issue and would not go away until new car sales picked up. In May BCA reported a shortage of good van stock was driving up prices.
It said dealers were increasingly looking at online routes to increase their stocking options.
Source: MotorTrader.com 7th Aug 2012 as published by Metropolis International Group Ltd