Increase in used car values slows

The increase in the value of used cars in the first two months of 2010 fell year on year, new figures suggest.

Figures from the British Car Auctions show there was only a small rise recorded between January and February.

The average value of a used car is now £5,959 after the increase of just under half of one per cent recorded in February compared with January.

The 0.3 per cent, or £20, increase means values remain 6.9 per cent, or £388, ahead year-on-year, although this gap is in steady decline as values began to recover in early 2009.

Average values rose in two of the three main product sectors: fleet and lease values rose by £105 (1.4 per cent) to £7,364 and nearly-new values improved by £1,085 to £18,922 – a 6.0% rise.

"Supply and demand remains well balanced in the used market, and February has been a much more typical month following the weather-affected start to the year," said BCA Communications Director Tony Gannon.

"Fleets are the winners this month as values continue to show consistent growth, thanks to limited supplies and strong demand."

Copyright © Press Association 2010