Used car prices hit record high
THE continuing rise of used car prices has been highlighted in a new report published by British Car Auctions (BCA).
It shows the average value of a used car in 2012 was £6,199 - the highest annual figure on record. This represented a rise of £280 compared to 2011 (up 4.7%), and by £358 (6.1%) compared to 2010.
Not only are used cars values rising, but average age and mileage of the vehicles has risen over the past three years.
The average age of a used car being sold at this year's average price of £6,199 was 62 months (59.7 months in 2010) with an average mileage of 58,969 (57,295 in 2010).
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As in previous years, the increase in values accelerated in the second half of the year, said BCA.
The average value of a used car at BCA in the second half of 2012 was £6,415, up by £408 compared to the first six months of 2012. It is the highest average value for a half year period on record.
Fleet and lease car values in the second half of 2012 rose by 12.3% year-on-year, while dealer part-exchange car values rose by 12.6% over the same period.
BCA's Managing Director Spencer Lock said:"These latest BCA figures provide further proof that the stock shortage resulting from depressed new car sales since 2008 is having a significant effect on used car values three and four years down the line.
"Used car retailers will continue to be faced with increasing competition when sourcing the most attractive and retail-ready used cars, because these are the cars everyone wants and they are in such short supply."
But Mr Lock sounded a note of caution about the market.
He said: "While interest in the best retail quality cars can be exceptional, overall demand is best described as fragile.
"Dealers are less likely to speculate because they know retail buyers are spending very carefully and expecting great value for money. There is a lot of buying to order."