January sees rise in used car values

January sees rise in used car values

January 2014 saw the average values of used cars rise again, according to data released by British Car Auctions (BCA).

A rise of 3.4% in the value of used cars has been reported by BCA, with the average value of a second hand vehicle going through their auctions now being £7381. This is an increase of £244 over the same time period of 2013, and is also the third highest average value for a used car recorded by BCA.

Used car dealers celebrated a great year in 2013, thanks to the economy finally starting to improve, and this has much to do with the soaring prices of second hand motors. With market performance returning to the levels seen in 2008, dealers are still being cautious whilst the word 'recession' still rings in their ears. This also goes for many fleet managers, who are keeping hold of their stocks for longer, in an attempt to squeeze as much value from them as possible. This means that the average age of used cars has also increased.

The average age of a used car is now 61.7 months, or just over 5 and a half years. This shows an increase of three months over the same time period of 2013. This rise in age of used cars has not increased the average mileage however, which remains steady at around 56,800 miles.

The editor of BCA's Used Car Market Report, Tim Naylor, commented: "As economic conditions continue to improve, we expect to see more motorists looking to change their current vehicle, with many likely to opt for a good quality used car. The longer term trends show that used car values continue to rise and January was exceptionally busy in the wholesale markets."

It seems that the used car market is slowly regaining the confidence of the customer, following on from the booming new car marketplace.

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