Used car values continued to rise in October, according to HPI Used Car Valuations Index. The year-on-year rate increased from 8.0% to 16.8%.
While previous years have seen declines in values from October through to December, this year is likely to be different with values staying broadly similar.
This time last year, used values were still falling compared to small increases in 2009, said HPI.
Martin Keighley, HPI’s used car valuations expert, said: “Average values have risen steadily since the beginning of the year and are set to buck the seasonal trend by not falling over the coming months. Values for most models are unlikely to fall for the foreseeable future, which is good news for dealers.”
12 and 36-month car values up 3%
Last month all 12-month and 36-month cars saw an increase with values up around 3%.
Looking at fuel types, the difference is minimal, with 12-month diesel cars seeing a slightly higher rise at 3.2% compared to 3.1% for petrol. In the 36-month sector diesel and petrol are also level pegging with just 0.1% difference, this time favouring diesel at 3%.
Keighley added: “The November market place is likely to show few changes from October. Used retail activity has slowed a little and values are showing little movement as a result.
“Fleets are still hanging on with extended contracts and waiting to see if confidence improves further. It looks like this wait could continue at least into May 2010.”