Used-car trade values are set to rise in early 2011, with "serious buyers" looking to acquire cars from the limited stock of vehicles, a report has claimed.
The research from vehicle residual values data provider CAP found that competition among buyers for the limited supply led to higher auction prices in December, with trade values predicted to rise even further.
According to the used-vehicle valuation experts, short-term demand is expected to be strong, as dealers are keen to avoid the conditions from early 2009 when they were left with a low stock.
Mark Bulmer, research editor, CAP Black Book, said: "Buyers spent December attempting to stock up, and this was not only driven by the desire to beat an anticipated January rise in values.
"Research during December consistently revealed a genuine appetite for stock, underpinned by a positive level of confidence, to ensure dealers were in a position to get the year off to a good start.
"There is also a widespread acceptance that buying will need to continue in January and that they will need to pay 'all the money' for the best stock because it is so thin on the ground and everyone will be pursuing it. For example, major disposers entered 2011 with significantly fewer vehicles than they began last year with."
Copyright © Press Association 2011