Demand for used cars remains on the rise

Record numbers of buyers are currently engaging in the used car market, causing an upsurge in both demand and prices.

The latest Market Analysis report from Manheim has revealed that the positive trends witnessed throughout January have continued into February.

Buyers now have to pay an average of £6,294 for a used car, which is a 10.5 per cent rise from January figures.

Mike Pilkington, managing director at Manheim Auctions & Remarketing, believes that prices are still beneficial for buyers despite this £597 rise in average prices between January and February.

He said: "The continuation of this significant recovery in used wholesale prices and in demand demonstrates an acknowledgement by the motor trade that investment in used car retailing is an excellent way of combating falling profits.

"Despite these recent price increases, used cars continue to offer really good value and the consumer can clearly see this."

Small hatchbacks and large family vehicles were among the big-risers in the Fleet sector, while the supermini segment rose in the Dealer sector.

Meanwhile, medium family vehicles and small hatchbacks were among the average price-risers in the Manufacturer segment.

However, Mr Pilkington has warned that if the demand for good quality used cars continues at its current rate then potentially there may end up being a shortage in stock.

"If the level of activity seen in the auction halls in the first two months of this year continues unabated there is a risk that the supply of good used wholesale stock will decrease," he concluded.

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