Recent British Car Auctions (BCA) figures show that the average price of used cars in the UK rose to a high of £8,261 during the month of May, reports AM Online.
The BCA’s monthly Pulse report said that used car prices increased by £103 in May compared to the previous month — representing a 1.3 per cent rise. Taken on a year-by-year basis, the £8,261 figure represented a 4.6 per cent rise equating to an increase of £458. The significant rise bucked predictions that the nearly new car market would see a slump. In fact, this sector accounted for the record month of May, according to the BCA.
UK car dealers will no doubt be welcoming the news that the used car market remains positive despite predictions of a slump. However, it is vital that dealerships ensure their motor trade insurance and road risks insurance policies are up to date to protect against unforeseen costs, losses and damage that can put an end to their business, even when the market is strong.
Simon Henstock, the chief operating officer for the BCA, commented on the recent Pulse report: “May is typically a slower month for the used vehicle sector, with the two Bank Holidays often proving disruptive to trading patterns. However, average values for fleet/lease and dealer part-exchange cars continued to rise and remain at record levels.
“We are seeing a two-tier market develop where the very best presented cars are attracting a lot of attention from buyers, while poorer condition examples need to be realistically valued if they are to compete. Ready-to-retail stock is very desirable and it is noticeable how the best grade and specification cars in attractive colours can outperform the rest of the market by some margin.”