Average used car values hit a record high in July, reports car auction house BCA, after another 1.4% rise over the previous month.
It means the average used car in Britain is worth £7706.
July’s results mean that average value is a hefty £831 ahead of the same point in 2013 – that’s a 12% rise in used car values in a year.
BCA does add that both average age and mileage fell during this time, but this is not the main reason for used car values going up – a basic shortage of used cars is behind it. “The shortage of good quality fleet and lease stock continues,” said BCA UK operations director Simon Henstock.
Volumes aren’t expected to pick up until the second half of September, he added, suggesting strong used car values will be with us for a little while yet.
Main dealers’ ability to source the finest used car stock and then draw used car buyers in has also contributed to the strength of used car prices, said Henstock. “Average values reached record levels as dealers continued to supply the marketplace with well-presented, realistically valued cars to tempt the buyers in.”
He issued a warning for those with poor-condition cars on their stocklist – adjust values now and get them shifted fast, “before volumes begin to rise and buyers have more choice from mid-September onwards”.
Time to look again at that scruffy but honest used car gathering dust on the local dealer’s forecourt?