By Daniel Machin
Nearly new car prices rose by 9.4 per cent in value during October compared to September, although volumes sold at auction were low, according to the latest BCA Pulse Report.
Used car values across the board grew by £166 over September's figure to stand at an average of £6,481 in October - the highest figure on record since Pulse began reporting in 2005.
The average used car last month was worth 8.6 per cent or £580 more than a year ago, despite being older and having more mileage on the clock.
A continuing lack of good, retail quality stock has created a very competitive trading environment which has helped fuel the rise.
Buyer demand remained "firmly focused" on vehicle condition, said Simon Henstock, BCA UK operations director.
He added: "Those retail quality cars are making often exceptional prices, but cars in poorer condition need to be sensibly valued if they are to attract the buyer's attention."
Average values have jumped by almost £900 across the board since the low point of £5,599 in April earlier this year.