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The largest automobile auctions company in the world, Manheim, are predicting that the price of used cars will fall during the summer, as more used vehicles make their way to market.

Despite these predictions, the average price of used cars continues to rise so far this year, with Manheim's latest instalment of their Market Analysis giving the average price of a vehicle sold at it's auctions during March 2014 as £3,285. This is £69 up over February 2014. This high value for used autos is thought to be mainly due to the fall in average age of such vehicles. The average age of a used car is now 100 months, down from 101, and with an average mileage of 75,500, down from 77,750. The values tracked by Manheim have continued to rise in such a fashion since August 2013, with average prices going up by £656 over this period, whilst ages have fallen by a month, and mileage has fallen by nearly 2,000 miles.

Whilst demand has remained high over March, this can be due to the number of vehicles written off during the floods of winter, with owners of such cars having to quickly replace their sodden motors. The valuation services manager for Manheim Auctions, Daren Wiseman, commented: "As we predicted last month, the strong demand for used cars has continued in March, which has caused the average prices to increase yet again. Unless we see a dramatic increase in the volume of vehicles coming to auction then I would expect this trend to continue over the coming months."

Another figure on the rise is the amount of new car registrations. In March 2014 this figure rose by 17.7%, with 464,824 new vehicles being registered. This is only around 2,000 less than the highest monthly number of registrations ever recorded, ten years ago back in 2004. With the number of new cars sold rising, it is inevitable that the cars that these are replacing are finding themselves on the used vehicle market. At the moment, we can see that this is not having a negative effect on their average price. This could indicate a pent-up demand, with buyers having waited for some time before buying a used vehicle. Manheim however are offering a note of caution. If the number of new vehicle registrations keeps on the up-and-up as the year goes on, the sellers' market we are currently experiencing may morph into a buyers' market.

The advice is therefore to sell your car now if you can, to take advantage of the current high values being seen on the market. Or, if you are thinking of buying, maybe wait a couple of months and check on how the prices have changed.

Added on Tuesday, 22nd April 2014 by WMCW Admin

Previously: Price of used cars up in March »