With a 3% month-on-month rise in used car values in August and a staggering 31% year-on-year increase, according to vehicle auction company British Car Auctions (BCA), average prices in this sector of the economy are showing unprecedented growth.
According to the BCA figures, August 2009 set a new record for average used car values, which rose to GBP6,223 – a GBP195 increase over July’s figures.
Average used car prices have risen every month since last November. And year-on-year values are now GBP1,458 or 30.6% ahead of August 2008 – reflecting how far values fell last year and how significantly they have recovered in 2009.
“The fact of the matter is that the bounce-back by used cars from the economic downturn last year has been exceptional”, confirmed Tim Naylor from BCA.
“Although there is a relative shortage of cars, there is still plenty of demand and as a result, prices have rallied. Prices in the last few months have been completely unprecedented, going up by between 25 and 30% and even more depending on the car. Nearly every vehicle we offer through our auctions and online sales is being sold at the moment, from older, higher mileage examples to nearly-new prestige models.”
Naylor added: “With over 75% of homes having a used car as the main household vehicle, used car sales are a significant indicator. At the very least, it suggests there is plenty of confidence in this sector of the economy.”