Used car rises continue
March 30th, 2009 by Richard Aucock
USED car prices are continuing to go up, reports BCA – a trend that’s been underway since November.
What’s more, the pace is, if anything, quickening.
‘The average price of used cars sold at BCA has been rising across the board since late last year, but the market really stepped up a gear in January,’ said BCA’s Tim Naylor.
This has gone a long way to righting the dramatic falls seen in the earlier part of 2008. Prices fell by nearly a third in some cases.
A shortage of stock is also having an effect – and the price crash of 2008 is partly behind this. Values fell so much, many large fleets decided to extend their deals, rather than suffer a residual hit.
Therefore, cars that would ordinarily be flooding the market have been kept out of the loop.
Of course, lower sales of new cars have also had their impact on the nearly new market, and may continue to keep used prices high further down the line, too.
Such demand from customers, coupled with this shortage of stock – and signs of improving confidence – all mean professional buyers are being less cautious, says Naylor.
‘Added to this, there is obviously a little more money about.’
It’s simple logic, he says. ‘High demand, allied to a relative shortage of stock, will always result in rising prices at auction.
‘Used prices fell so far last year that, even in the current rising market, there is still value for money to be had.’
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