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Used car values stable in August

Used car values increased by 4.5% by £270 in August, but supply issues still continue to cause trouble in the sector.

According to the latest figures from BCA the increase in values came despite cars being older and having higher mileage on average.

The used car remarketing company attributes much of this year on year increase to a general shortage of good quality vehicles for sale.

Across the board, used cars averaged £6,158 in August, down £22 compared to July, which BCA believes was largely as a result of a change in model mix, as lower value part-exchange cars represented a slightly bigger percentage in August than the previous month.

Tony Gannon, BCA communications director, said: “August provided another welcome result for used car sellers because of a general shortage of vehicles for sale.

“But the short term prospects suggest that volumes will rise from mid-September onwards.

“This traditionally exerts some pressure on average values and conversion rates and that could be even more pronounced this year thanks to the continuing uncertainty surrounding the economy and the pressure on consumer disposable income.”

Within the individual product sectors, on-going supply issues meant values continued to rise.

Average fleet & lease car values in August increased by £101 compared to July to reach a new record monthly value of £8,154.

Year-on-year, the fleet & lease sector has posted double digit increases for three months running.
Average part-exchange values increased by just £2 compared to July, but this also established a new high point of £2,951 and year-on-year figures are well ahead. Nearly-new values also posted a small increase.

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