 Used car values increased in May for the seventh consecutive month, according to BCA's latest Pulse report.
The auction house said average values for the month were 2.3 per cent higher than in April and 5.7 per cent ahead, year-on-year, although it now expects the rise to slow down.
Average values up
In May, average auction values increased to £5,773, a rise of £132 (2.3 per cent) over the figure of £5,641, recorded in April. Year-on-year, values were £311 ahead.
Average values at Manheim fell by 0.6 per cent for the month, although the rival auction house said demand was buoyant.
Fleet cars rose by 2 per cent (£139) to break through the £7,000 barrier for the first time since 2007. Part-exchange values improved by £45 to £2,360 (1.9 per cent), while nearly-new average values improved by £1,500 to £14,692, although this was mainly driven by model-mix.
Growth slowing
Despite the continued monthly price rises, BCA said average growth appears to be slowing, following some spectacular increases earlier in the year. BCA pointed out that Easter last year heralded the beginning of a price slump that was to last until October. It said there are no signs that such dramatic price swings are expected in 2009.
BCA stock levels were relatively low forcing trade buyers to pay more in May to satisfy demand from their retail customers.
"May has been a pleasant surprise, as all the signs were that the market was about to soften. However, with volumes down and demand holding up exceptionally well, we have recorded another increase in average value, month-on-month," said BCA communications director Tony Gannon.
"Despite the market now heading into what is traditionally the quietest time of the year, signs suggest that average prices will be maintained at this higher level - at least while supplies of vehicles are relatively thin in the wholesale market."
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