Used car values hit seven year high

Date: Wed 23rd May 2012   |   Author: Natalie Ridgwell | Google+

Used car values in first quarter are at their highest for seven years with demand exceeding supply for the best cars.

The average value of a used car in the first quarter of 2012 was £6,114, according to the BCA Quarterly Pulse Report.

 This is the highest Q1 value since Pulse began reporting in 2005.
Year on year, Q1 values were up 3.6%
BCA communications director Tony Gannon said: “There is little doubt the value element of the market has recovered despite the on-going economic issues.
“However, the supply side of the market equation should not be ignored.  There have been well reported constraints on supply of the best, retail quality cars.
“In a competitive remarketing environment this is undoubtedly contributing to the general rise in values.”
While values are rising, the average age and mileage of used cars is also increasing, said BCA,
The average fleet and lease car had covered nearly 3,000 more miles when sold in Q1 12 compared to Q3 10.
The average age of used vehicles is also rising and passed 61 months in Q1 12 – the second highest figure on record.
Nick Wake commented: “With our clients increasingly selling used cars of greater value and higher mileage, the need to provide customers with the protection of flexible and reliable vehicle warranty is a must”. 
AutoProtect vehicle warranties cover cars, bikes, commercial vehicles and caravans and our cover levels can be adapted to suit dealer and customer requirements. The customer proposition is further enhanced with the benefits of premium funding enabling the customer to spread warranty costs over ten months.

Contact: Nick Wake
Tel: 0871 384 3507