9:22 am, March 5, 2014
GROWING used car supply is being soaked up by strong retail demand, according to the latest market report from CAP Automotive.
Despite significantly more cars in the market today than a year ago, average values saw a modest rise during February, which could continue during the first two weeks of March, according to CAP market experts.
CAP constantly monitors and analyses used car trade sales across the UK to identify underlying trends within the market and to understand the impact on values of volume, condition and age.
According to Black Book Live, CAP’s unique real-time guide to benchmark used car trade values, there is evidence that used car volumes are now up to 17 per cent higher than at this point last year.
CAP attributes the increase to a growing number of part-exchange cars from private owners taking advantage of low-finance new car deals, along with more cars appearing from fleets that held on to vehicles for longer than usual during the economic downturn.
Black Book Live senior editor Derren Martin said: ‘The increase in wholesale used car volume has been balanced by a continued strong retail appetite for used cars as the economy continues to pick up.
‘The largest increase in volume has been for cars over four and a half years old, which grew to 64 per cent of all cars in the market during February, compared with 62 per cent at the start of last year.
‘Those cars are also showing higher mileage than cars of the same age did a year or more ago, which supports our previously-reported view that many people have been holding on to their cars for longer while waiting for economic confidence to return before stepping back into the market.
‘March will bring a further influx of part-exchange vehicles into the market and Black Book Live will be monitoring daily for any impact that has on overall prices.’
