Used car values reached record levels in Q3, according to the latest BCA Quarterly report.
Values averaged £6,216 in the quarter, the highest since Pulse began recording in 2005. The average value was 5.5% ahead of Q2 and 4.9% ahead of Q3 last year.
The average value of part exchange cars was 5.5% ahead of Q2 and 11.2% year on year.
BCA communications director Tony Gannon said prices were being inflated by poor supply streams.
“With on-going economic pressure, rising costs and a relatively weak retail environment, it might seem counter-intuitive to report that used car values continue to climb year-on-year.
“However, supplies reaching the wholesale used car market are quite significantly down on the peak seen four to five years ago and there is a real shortage of good quality, ready to retail used cars.
“This is leading to fierce competition and generally rising values for the best examples reaching the remarketing arena,” he said.
Gannon said the supply shortfall was a long term issue and would not be resolved until new car sales picked up to get more vehicles to market.
He added: “This doesn’t diminish the effect of the typical seasonal pressures, of course, which have seen values and conversions weaken in early October.”