Blackbushe, 16th July 2014 - Newly released data from leading vehicle remarketing company, British Car Auctions (BCA) shows that average used car values continue on a long term upward trend as the economy continues to recover.
Quarterly data from BCA shows that average used car values climbed by £174 in Q2 2014 compared to the first quarter of the year, bucking the pattern established over the previous two years where Q2 values declined against the first quarter of the year. Average values were also up by £696 year-on-year, equivalent to a 10.1% increase. While values are rising, both average age and mileage are falling.
BCA’s UK Operations Director Simon Henstock commented “Average used car values have been rising largely as a result of an imbalance in supply and demand. As the economy improves, there is a greater demand from motorists to change their existing vehicle, yet supplies of good, retail quality cars in the wholesale sector are relatively limited – a legacy of the lower new car sales following the onset of the recession.”
He added “This has resulted in some significant rises in average value across the used car market, which is highlighted when you look at the longer term trends. Values of dealer part-exchange cars sold by BCA are averaging 40% more in 2014 than they were in the same period in 2012, while values for fleet & lease cars are up by 21% over the same timescale. Some of this will be down to model mix, but much of it is sheer demand in a competitive marketplace.”
Nearly-new values have also risen, but with much lower volumes reaching the used car sector, model mix has a significant effect on average values. Values rose by £1,820 over the past year, equivalent to a 9.4% increase.
Published by BCA Analytics
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