The value of used cars in the UK has reached its highest ever level in 2014, new figures have suggested.
British Car Auctions (BCA) has revealed the full-year figures from last year, in which the average value of a used car sold at auction was £7,622. This was an increase of £566 on 2013, marking the highest annual figure the BCA has ever recorded.
The continuing rise in used car values is certainly positive news for car dealers across the UK, but it is important for them to consider the potential implications this could have on their motor trade insurance policy. If the value of their stock notably increases they might need to revise their policy to ensure it still offers adequate cover against said stock being damaged or stolen.
According to the BCA, over the last five years the average value of used cars has steadily risen. Prices jumped by 1.3 per cent in 2011, 4.7 per cent in 2012, 13.8 per cent in 2013 and then eight per cent in 2014.
The increase in values is supported by the fact that the average age and mileage of the cars being sold has been declining, meaning more people are buying newer vehicles that are in better condition.
Simon Henstock, BCA’s UK operations director, explained: "In terms of the used car market, the relative shortage of stock – a result of low new car sales over several years following the onset of recession – has helped keep values high. However, new car volumes have improved notably in 2013 and 2014."