Used car values still rising

May 12 2009

New figures have revealed the average value of used cars is continuing to rise as the recession pushes more people into the market.

Figures released by the British Car Auctions (BCA) organisation have shown used car values increased again during April, as they have done since the start of the year, with motorists choosing to buy a used car rather than splash out on a new vehicle during the global economic downturn.

BCA communications director Tony Gannon said: "April has been something of a surprise, as all the signs were that the market was beginning to soften. In fact, demand has held up exceptionally well, resulting in another modest - but welcome - increase in average value, month-on-month."

He added: "Compared to April last year, average values are ahead by more than four per cent, which indicates the strength of the recovery and suggests values are very much back on track."

Earlier this month, research from car value monitor Glass's predicted that the value of used cars would continue to grow over the course of 2009, surpassing levels seen at the end of 2008.

The research pointed out that although used car values initially struggled during the start of the global recession in 2008, they have recovered well as more drivers search out cheaper options, while many people are holding onto their cars for longer, constricting supply in the used car market.

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