May sees rise in used-car market
May sees rise in used-car market
A 2.3% May rise in used-car prices, which might have a knock-on effect on car insurance premiums, has been welcomed by British Car Auctions (BCA).
Says spokesman Tony Gannon: "It has been a pleasant surprise, as all the signs were that the market was about to soften. However, with volumes down and demand holding up exceptionally well, we have recorded another increase in average value, month-on-month."
"Despite the market now heading into what is traditionally the quietest time of the year, signs suggest that average prices will be maintained at this higher level - at least while supplies of vehicles are relatively thin in the wholesale market."
Average prices increased to £5,773, up £132 compared with the previous month, heralding signs of a recovery in the used-car market. Average prices were up 5.7% on 12 months ago.
As sales of premium models improved, demand for affordable transport increased activity in the part-exchange sector for the sixth month running, up £45 on April’s £2,360.
Copyright © Press Association 2009
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