Car values 'up £11 in February'

British Car Auctions' (BCA) latest Pulse report has revealed that average values slightly increased in February, thanks largely due to a richer model mix in the nearly new sector.

According to the report, average values rose £11 from January to reach £5,985, which is the highest level recorded since December 2009.

Fleet and lease values fell on average by £186, or -2.4%, while the part-exchange sector fell by £39, or -1.3%. However, in the more volatile nearly new sector, values improved considerably from January, rising by £2,208, or 12.5%.

Elsewhere, fleet values fell by £186 to £7,553 in February, with CAP performance dropping by just under a percentage point to 97.7%. Year-on-year values, meanwhile, were ahead by £189, equivalent to a 2.5% rise.

Model mix will inevitably have had a part to play in the average value decline, with a lower percentage of higher value premium cars sold in February compared to January.

The nearly new sector saw values rise sharply, with over £2,200 added to the January figure to reach £19,827. The model-mix was largely responsible for the increase with sold volumes of higher-value premium cars increasing by nearly 20%, while the number of volume models sold decreased by around 8%.

Although marginal, the rise in car value might prompt more motorists to shop around for the bestcar insurance deals available when buying a second hand vehicle.

Copyright © Press Association 2011