Average used car values have hit £9,211 in Q3 for a 2016 high, according to a report by Autorola UK.
The British vehicle remarketer stated that average prices for units sold through its online remarketing portal also rose by more than £400 compared to a Q1 result of £8,798.
The Q3 result improved £57 on the £9,154 average value recorded by Autorola in Q2 of 2016.
Autorola attributed the rise to strong demand from both franchised dealers and independent used car traders, and the strong appearance of used ex-fleet stock and dealer part exchanges in the market.
The online remarketer also suggested that strong consumer demand throughout September was driven in part by drivers ‘cashing in’ PCP contracts before they reached full term.
Autorola suggests this may have driven a fall in average age to 31 months in Q3 from the 31 months recorded in Q2.
Average mileage for used cars increased in Q3, with Autorola recording 22,856mi, an increase of over 200mi from Q2’s result.
Jon Mitchell, Autorola UK’s sales director, said: “Despite the increased sales volumes, prices have remained strong which is down to high volumes of excellent quality used stock coming onto the market supported by consumers having more disposable income to invest in a replacement used car.”
With Autorola reporting strong initial trading in October, Mitchell remained optimistic about the used market.
He said: “Consumer confidence looks set to continue which should keep used deand and prices consistent until the end of the year.”