Used values boosted by nearly-new surge (From Campaign Series)

Used values boosted by nearly-new surge

3:30pm Monday 25th January 2010

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DECEMBER used car values were boosted by a change in model mix and the traditional Christmas rise in demand, according to British Car Auctions.

A greater number of nearly-new models available for auction saw the average used car value rise 3.1% or £185 to £6,188.

Nearly-new values saw the biggest increase, up 5.4%, but fleet and lease values dropped 1.9%. BCA reports that part-exchange values dropped by exactly £100 in December.

Year-on-year values remain well ahead of December 2008; up £1,352 or 27.9% on average.

BCA's Communications Director Tony Gannon said; "December often sees a surge in prices as professional dealers acquire stock in readiness for the New Year. Supplies of fleet/lease and part-ex cars available in December were down broadly in line with the reduced trading period, although the numbers of nearly new cars remained fairly static, month-on-month. This changing mix of higher value cars in an active market saw average prices rise for the first time since August. However, average values in the bigger volume Fleet and Part-Exchange sectors continued to decline.

"If the economy continues to recover, that will give consumers the confidence to change their car. There is a view that we are on an upward curve, but it looks to be very gradual and protracted. However, it is at least progress and some of the benefits will be felt in the retail used car market, which should be good news in the wholesale remarketing sector."

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