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Used car values rise in July

Date: 18 August 2017   |   Author: Daniel Puddicombe

The average price of cars sold at auction rose by £167 last month to £8,962 the latest BCA Pulse report has revealed.

According to the monthly report from the remarketing giant, this is a very similar increase to what was seen in July 2016, while year-on-year values are ahead by £621 (7.2%).

BCA said the increase in value reflects steady demand for second-hand vehicles and a richer mix of stock available compared with a year ago.

It added that the average age and mileage of vehicles sold continues to fall, with cars showing 2,200 fewer miles on the odometer than 12 months ago with stock being two months newer than a year ago.

Values for ex-fleet and lease cars improved sharply during the month, rising by £387 (3.8%) compared with June's figures, climbing to the highest point on record (£10,486), with the year-on-year figures being ahead by £821 (8.4%). The cars sold last month had an average age of 38.4 months compared with 39.0 months 12 months ago with the average mileage declining by 2,503 miles.

Part-exchange values fell by £30 (0.6%) during the month with the average price now standing at £4,627, while year-on-year values are ahead by £132 (2.9%).

Lastly, nearly new values improved by £548 in July, equivalent to a 3.0% uplift in June.

"Supply and demand has been relatively well balanced over the summer period, and average values rose in July, as buyers competed strongly for good quality stock," said Stuart Pearson, BCA managing director UK remarketing. "However, professional buyers remain selective, often buying to order and focusing their attention very firmly on the ready-to-retail vehicles that can be churned out quickly. The best presented and specified cars are selling quickly, while the budget end of the market is relatively strong, providing the condition is good, and vehicles are sensibly appraised and valued."

He added; "As the market approaches the plate change period, we anticipate a period of intense activity in the wholesale sector. Typically, we would expect to see the usual impact of a brief period of oversupply in October and November when volume reaches a peak, followed by a strengthening of prices and conversions as people start to plan for the New Year."