Used car values 'remain strong'

Used car values 'remain strong'

The price of used cars has increased amid high levels of consumer demand for affordable vehicles, according to new figures.

There was a 13% year-on-year increase in used car values last month, British Car Auctions's (BCA's) Pulse Report for February shows, with average values staying above £7,000 for the third consecutive month.

Values of used fleet and lease cars in particular enjoyed strong growth, while average part-exchange values also held firm at over £3,500 for the third month in a row.

BCA operations director Simon Henstock said current economic conditions were surely a key driving force behind the rise in values at the lower end of the market.

"As household budgets remain squeezed, the increased demand from motorists for affordable transport is driving values upwards," he explained.

"There is likely to be continued demand for 'budget motoring' from drivers who simply cannot afford to buy a more expensive car, but still need personal transport and need it quickly, because their current vehicle has become too expensive to run, repair or maintain."

As well as shopping around for the cheapest car insurance , it seems motorists are also doing all they can to drive the most economical vehicle possible.

However, Henstock conceded that the market remains fragile on a fundamental level because of the economic conditions and said "constricted supply" is a major reason for the high prices.

Copyright Press Association 2013