Motortrades Insight Magazine Online
Related Tags: Used Car, Used Car Dealer, Car Auction, British Car Auctions, Price Increase, Value, Cars
Used car prices increasing after hitting record high
USED CAR dealers and private traders are being encouraged to sell their vehicles now, after it emerged today that prices rose 4.7 per cent last year.The continuing rise is highlighted in a new report published by British Car Auctions (BCA), which shows the average value of a used car in 2012 hit a new record of £6,199.
The average price of a used car is now close to the price of some new city cars.With a £280 increase compared to 2011 and a £358 rise on 2010, dealers are now worrying that prices for used cars may have reached their peak before a potential dip later in the year.
And despite the average used car age increasing, in addition to mileage rising by over 1,670 miles since 2010, values continue to increase.
As in previous years, the increase in values accelerated in the second half of the year. The average value of a used car at BCA in the second half of 2012 was £6,415, up by £408 compared to the first six months of 2012. It is the highest average value for a half year period on record.
BCA's Managing Director Spencer Lock said: "These latest 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."
Fleet and lease car values in the second half of 2012 rose by 12.3 per cent year-on-year, while dealer part-exchange car values rose by 12.6 per cent over the same period.
He added "While interest in the best retail quality cars can be exceptional, overall demand is best described as fragile. Dealers are less likely to speculate because they know retail buyers are spending very carefully and expecting great value for money. There is a lot of buying to order happening right now."
Related Articles // More Like This
- 1
- 2
- 3
News 24/7
MotorTrades Insight are now official news providers for NewsNow.
Top Stories // This Week
INTERVIEW: Luca Fioravanti, Head of Business Development for Italian design house Fioravanti.
His father is one of the most famous automobile designers of all time - widely regarded as an Italian car design legend, having been nominated for the prestigious 'Car Designer of the Century' accol... 
Ministers target whiplash in drive to lower motoring costs but critics say criminal gangs will continue to 'milk th.
A series of measures aimed at driving down motoring costs, including insurance premiums, was announced by the government today.In addition to freezing the cost of the MOT test at £54.85 until 2015, ... 
Major automotive technology conference to take place on eve of Wales Rally GB.
Wales’ premiere automotive technology conference will take place in North Wales on the eve of Wales Rally GB.Just as the World Rally Championship is the showcase for advanced motor sport technology,... 
Mazda bolsters design squad with British creative director Kevin Rice.
Mazda has strengthened its European design team with the addition of Kevin Rice as creative director. The 49-year-old Brit is now leading the European creative design process and will focus his... 
New MG6 diesel is more eco-friendly.
The new MG6 GT will be more eco-friendly with emissions of just 129g/km – ten grams of CO2 less than the current model offered by the Chinese-owned brand. The decrease in the amount of emission... 
MPs Shown Winning Formula for Automotive Production at McLaren.
Last week (Thursday 24 October), the McLaren Technology Centre played host to a cross-party group of MPs and Lords as part of an industry visit organised by the Motor All-Party Parliamentary Group a... 
Mercedes-Benz launches Daimer Fleet Management.
Daimler Fleet Management has been launched, delivering what Mercedes-Benz hope to be 'greater choice and flexibility' to both new and existing fleet customers.The news comes as Mercedes-Benz in the ... 
Toyota to tour Britain's universities in latest recruitment drive.
Toyota has launched a search for Britain's most promising young talent, with recruitment under way for its student placement scheme.It will give undergraduates a 'great opportunity to gain hands-on ... 
Ex-fleet car values rocket by 5.6 per cent in September.
Prices of ex-fleet cars at auction rose for the first time in three months, with values increasing by £390 (or 5.6 per cent) during September.September witnessed the average price of ex-fleet vehicl... 
Britain's biggest baby boom in 40 years boosts child car seat market, but what rules must parents follow?.
A little over two months ago, it was reported that the UK had experienced its largest baby boom in four decades, with 813,200 births in the year up to June 30, 2012.It was the largest rise of any Eu... 
Volkswagen Commercial Vehicles has its best ever September.
Volkswagen Commercial Vehicles has continued a record-breaking 2013 with its best ever September registrations. With Van Centres across the UK reporting brisk business, the company has also in...