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Study shows used car values rise

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Average used-car values increased in January after a shorter trading period in snow-hit December, according to figures by the British Car Auctions (BCA).

The Pulse report by the auction firm showed that values improved for vehicles from the fleet and lease sectors, while part-exchange values hit record levels.

The used car market was sluggish in December, largely because of the disruption caused by heavy snowfall and freezing temperatures.

However the study found that trade volumes increased 10% in January, in comparison with the same month last year - an improvement in performance that must have been noted by car insurance firms.

The rise in value is seen as an encouraging sign for the growth of the used car market.

BCA's communications director Tony Gannon said: "It is no real surprise to see values strengthen in January as the markets generally enjoy an uplift in activity following the extended Christmas break. This is typically sustained until the Easter period - which usually represents a watershed in demand.

"Anecdotally the retail motor trade has enjoyed a much better January, following a poor December when motorists simply could not get out to buy. Part-exchange sold volumes actually increased by over 88% in the month, a reflection of both a good January and a very lean December."

© Press Association 2011