Used car values reach record levels in December

Used car values continue to rise in the used car market according to the latest Pulse report from British Car Auctions (BCA) as average values reached a new high in December 2013. With new car sales for December reported by the SMMT today also showing continued growth, BCA’s data reveals that used cars averaged £7,573 across the board, a month-on-month rise of £84 (1.1%) compared to November.

Year-on-year, December 2013 was ahead by £212 or 2.8%. Average mileage and age both rose slightly over the month as BCA sold a higher percentage of dealer part-exchange vehicles.

Simon Henstock, BCA’s UK Operations Director commented: “December is a short month for trading and the remarketing sector is relatively short of stock. Model mix tends to change as fleet & lease stock is often held for the New Year, while dealers will often retain part-exchange vehicles to meet the January demand from retail customers. This aside, December continued the long term trend of rising average values in the wholesale markets and a new record was established, beating the previous highpoint which was seen exactly 12 months earlier in December 2012. ”

He added “Looking ahead to 2014, there are no signs that the demand for retail quality used cars is going to ebb, so we expect values to remain strong. Sourcing vehicles will continue to be a major concern for used car dealers and if the economy continues to improve, increasing retail demand could mean there is even more competition for stock in the remarketing sector.”