Second hand car prices rise

Second hand car prices rise

In recently released data from British Car Auctions, we see that the averaged used car price is on the increase, and so is the average age of a second hand car.

The report released by BCA is annual data on the used car market's performance over the year, and is collated from actual prices seen at it's auctions. In the report for 2012, we see that average price of a second hand car was £6,199, which was an increase of 4.7% over 2011. This also happens to be the highest value on record.

Also increasing was the average age and mileage of used cars, with average age creeping up to just over 5 years old (62.07 months), and the average mileage rising to 58,969 miles. This information could go to show that the supply of used cars in the UK could be decreasing, which can only mean that prices will continue to rise in the coming months and years.

The increase in car values was more prominent in the second half of the year, which is a common occurrence, with the average price being £6,415 in the last six months of 2012, £408 more than during the first half of the year. The value of part-exchanges from car dealers also rose over the same period, increasing by 12.6% over the second half of 2011.

The managing director of British Car Auctions, Spencer Lock, commented: "These latest BCA figures provide further proof that the stock shortage resulting from depressed new car sales since 2008 is having a significant effect on used car values three and four years down the line... Used car retailers will continue to be faced with increasing competition when sourcing the most attractive and retail-ready used cars, because these are the cars everyone wants and they are in such short supply."

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