Used car values have seen the second highest rise this year since 2005 as a combination of stock shortages and market demand push prices up, according to British Car Auctions (BCA).
According to figures from BCA, October values climbed by £167 (2.4%) compared to September 2013, and were up by £693 (10.6%), year-on-year. Average mileage continues to fall – down by around 2,200 miles compared to last year – while average age was marginally lower at 61 months.
An on-going shortage of good quality stock, combined with a highly competitive trading environment as the economy starts to show signs of recovery, has helped to push up values by 10%.
Vehicles sold by fleet & leasing companies continued to average over £9,000 in October – having risen to this record high in September.
The values for dealer part-exchange vehicles also rose to yet another new record level, climbing by £80 compared to September.
Simon Henstock, BCA’s UK operations director, said: “October proved to be another exceptionally strong month at BCA.
“Fleet cars remain in relatively short supply and there is plenty of competition for any vehicle in ready-to-retail condition which is keeping values high.
“And while buyers continue to focus on smaller and more economical cars, demand remains right across the board up to late-plate prestige and luxury marques. Indeed, significant results were recorded in a number of Top Car sales during October, underlining that buyers are quite happy to invest six-figure sums for the right vehicle such as the £127,000 paid for a 2012 Mclaren MP4-12C at BCA Blackbushe.”