The average value of a used car in the UK rose by 1.9 per cent in July, according to the latest figures from British Car Auctions (BCA).
Across the first seven months of the year, the average price of a used car sold in the UK was £206 - or 2.6 per cent - higher than the same period in 2014. Meanwhile, the value of the average nearly-new vehicle improved by nearly £900, rising to £21,250 in July, which is the highest average monthly value since January this year.
With the value of their stock rising, car dealers must keep an eye on the cover provided by their motor trade insurance policy to make sure it still provides adequate protection for the full value of the cars they own.
The one area where BCA's figures highlighted a slight dip for car dealers was in part-exchange values, which decreased by £10. However, at £4,268 this remains the fourth highest average part-exchange value ever recorded by BCA.
Simon Henstock, BCA’s UK operations director, commented: “Supply and demand remain well balanced, with conversion rates improving in July, despite the typical summer slowdown the market experiences once the summer holiday period begins.
“Condition, preparation and presentation is important and it is worth considering SMART repairs for those cars that have suffered low level cosmetic damage in the shape of car park dents, stone chips and damage to alloy wheels.”