Used car values in 2013 have rocketed to record levels – with more of the same due in 2014, says British Car Auctions (BCA).
BCA’s latest Pulse Report, which monitors the used car market, shows that average used car values this year have seen a substantial year-on-year increase over 2012.
This is largely down to the 2008 economic recession meaning fewer new cars were registered, and now more people are buying second hand cars as the economy recovers.
Simon Henstock, BCA’s UK Operations Director said: “A year ago, we were saying that used car values could not possibly maintain this upward price trend forever and, while that is no doubt correct, there has been little in 2013 to suggest a sustained fall in values any time soon.”
Used car values are set by the balance between supply and demand – so fewer used cars and high demand pushes up prices.
Henstock added: “Looking into 2014, January typically brings an uplift in activity, and this is usually sustained until the Easter period – which often represents a watershed in demand. Whether or not we see the sustained price evolution we have experienced over the past 24 months will largely depend on stock availability and buyer confidence.”
Are you buying or selling a car, or looking to soon? Have you noticed strong second hand prices? Let us know by commenting below.