Average car values rose in January

Average used-car values rose in January following a shorter trading period in snow-hit December, new figures have shown.

The Pulse report by BCA found that values improved considerably for vehicles from the fleet and lease sectors, while part-exchange values reached record levels.

Findings revealed that trade volumes rose year-on-year by 10% - an improvement in performance that will have been noted by car insurance companies.

Tony Gannon, communications director, BCA, said: "It is no real surprise to see values strengthen in January as the markets generally enjoy an uplift in activity following the extended Christmas break. This is typically sustained until the Easter period - which usually represents a watershed in demand.

"Anecdotally the retail motor trade has enjoyed a much better January, following a poor December when motorists simply could not get out to buy.

"Part-exchange sold volumes actually increased by over 88% in the month, a reflection of both a good January and a very lean December. And with new-car sales remaining under pressure - down 11.5% to 128,811 last month compared with January 2010 - used-car activity remains the best profit opportunity for most dealers."

Copyright © Press Association 2011