The average price of a second-hand car rose by 4 per cent in November as the recovery in the used-vehicle market continued.
Figures from British Car Auctions (BCA) showed that the average price of a used car rose to £6,201 in November, the second highest level in the past two years.
As well as a 4 per cent rise on October’s figure of £5,963, this represents a 10 per cent increase on the two-year low point of £5,626 recorded in April and a 7 per cent hike compared with November 2010.
Trade-ins see biggest rise
The BCA said that the most significant increase was experienced in the part-exchange sector: the typical return for trading in your old motor rose by more than 4 per cent in November to £2,877.
This is the highest level in the past two years.
In the nearly new sector, however, the picture was less bright: the average value fell by 4 per cent in November, although the BCA said that it was wrong to read too much into this given the low number of trades that had taken place in this part of the market.
BCA spokesman, Tony Gannon said: “November provided a good balance between supply and demand leading to improved used car values in the bigger volume sectors of dealer part-exchange and fleet/lease. While there was a fall in the average value of nearly-new cars this was entirely the result of model mix, as supply remains short in the wholesale arena.”
“Otherwise, the overall picture remains very similar to the previous month, with healthy demand for cars in the best condition, but little appetite for cars requiring refurbishment or repair, unless they are realistically valued to sell.”
Looking to buy a used car? Take a look at our 30-second video on the subject:
