Used values rise for fourth month

Average used car values rose in February for the fourth consecutive month, according to the latest BCA Pulse report.

February saw an £435 average rise against January (up 8.4 per cent), which was itself £300 up on December’s figures. Since October last year, average car values have improved by 17.9 per cent.

The auction house said performance against Cap continued to improve, increasing by over six percentage points to 103.61 per cent; the highest monthly figure on record for all-sector values since 2005.

While average monthly figures remain behind those recorded in 2008, the difference is narrowing – February 2009 was £282 adrift of February 2008, while in January the gap was over £650.

BCA said stock from all sources was even more limited in February than it was in January.

“The continued high demand from professional sellers combined with the relative dearth of stock has kept sale conversions high – averaging over 90% at BCA in February and values firm,” said BCA Communications Director Tony Gannon.

“There is now little doubt that used values are making a seasonal but possibly significant recovery from the low points of last year. The market is possibly experiencing some deferred demand from last year, as potential buyers held back from any big-ticket purchases as the economic turmoil became apparent.”