The average value of used cars has continued to climb, rising £174 in the second quarter of 2014 compared to the first three months of the year, according to the latest figures released by the British Car Association (BCA).

Year on year average values were also up 10.1% to £696, while average mileage and age both continued to fall, year-on-year.

According to the BCA, cars from the fleet and lease market have also seen average values increase by £784, or 8.9%, over the past 12 months and £1,663, 21.1%, over the past 24. Average mileage and age also increased, year-on-year, however.

Simon Henstock, director of UK operations for the BCA, said: "Average used car values have been rising largely as a result of an imbalance in supply and demand.

"As the economy improves," he explained, "there is a greater demand from motorists to change their existing vehicle, yet supplies of good, retail quality cars in the wholesale sector are relatively limited – a legacy of the lower new car sales following the onset of the recession."

Henstock attributes the "significant rises" in average values within the used car market to this fact and believes it is part of a longer term trend.

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"Dealer part-exchange cars sold by BCA are averaging 40% more in 2014 than they were in the same period in 2012, while fleet & lease cars are up by 21% over the same timescale," he added.

"Some of this will be down to model mix, but much of it is sheer demand in a competitive marketplace."