The nearly new car market has performed strongly over the past six months, despite carmaker incentives on new cars piling on the pressure.

The average price paid for a nearly new car is up 24.5% in the second quarter of the year (by £2,283, close to £12,000) compared to Q2 2004, according to the first BCA quarterly used car report, produced in association with Sewells Information and Research.

Average prices for three-year-old/60,000-mile fleet/lease cars have risen 8.7% during the first half of 2005 against the last quarter of 2004, thanks to a dip in average mileage and age. However, year-on-year the averages have fallen by more than 3.5%.

The BCA Price Index reveals that across the three key sectors – nearly-new, fleet/lease and part-exchange – prices started to recover in the second half of 2004. But where many expected prices to kick on in 2005 they have been relatively flat, even dipping slightly in the second quarter.

Despite the softer prices, it looks like used car activity will be stronger than new this year. BCA says: “Expect to see manufacturers and dealers stimulating business with excellent retail deals on new and used cars.”