Rise in used-car auction prices

The prices of used cars are going up as the first shock of the credit crunch appears to be receding, according to British Car Auctions (BCA).

Its specialist Pulse report says that February's average 8.4% - £435 - rise was just £282 less than last year, compared with January's deficit of £650.

While average monthly figures remain behind, it nevertheless cites high trade demand and a drop in supply as being responsible for improved the sales and firm values at its auction sites.

Spokesman Tony Gannon said that the the market may be enjoying a bounce after the recent economic turmoil put potential buyers off spending on big-ticket items.

He said that, given the circumstances, he was pleasantly surprised after widespread expectations that the price rises normally associated with this time of year to be more subdued.

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