Used car values show strong start to summer

Jun 5 2009

Average used car prices have continued to rise over recent months and show no sign of abating through the summer, it has been claimed.

Figures from the British Car Auctions (BCA) organisation have revealed that average used car values have now risen for seven consecutive months.

In May, average used car values grew by 2.3 per cent compared to the previous month and were 5.7 per cent higher than in May 2008.

"May has been a pleasant surprise, as all the signs were that the market was about to soften. However, with volumes down and demand holding up exceptionally well, we have recorded another increase in average value, month-on-month," said BCA communications director Tony Gannon.

"Despite the market now heading into what is traditionally the quietest time of the year, signs suggest that average prices will be maintained at this higher level - at least while supplies of vehicles are relatively thin in the wholesale market," he added.

The UK used car market has recovered strongly since the start of the year after suffering a slump in demand at the end of 2008, when the banking crisis hit the industry hard.

Meanwhile, recent statistics released by EurotaxGlass's have suggested the JAGUAR XF will hold its residual value better than other cars over the coming years.

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