Average used car values increasing

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The average cost of a used car continued its rise during April, although the value of part-exchanges was down, British Car Auctions has said.

Used cars were being sold for an average 5,871 pounds last month, 530 pounds more than the April 2009 average, an increase of 1.4 percent or 80 pounds on March 2010. BCA reports have however reduced this margin since the start of this year.

The best-performing sector for last month was fleet and lease, with the average value up 3.6 percent or the equivalent of 278 pounds. Fleet and lease's year-on-year values increased to 986 pounds, compared with April 2009 figures.

The overall average value of part-exchange vehicles was down 4.1 percent, or 113 pounds, to 2,592 pounds, despite a small rise the month before.

BCA's Tony Gannon said: "In the four weeks since Easter, we have seen in the market consecutive weekly increases in auction entry, falls in conversion rates and a reduction in both actual prices and performance against CAP. In many ways normal service has been resumed following the unusual patterns seen last year when the market just kept rising until the autumn.

"This year is likely to follow the pattern of previous typical years, with softer demand through the summer months."

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