Strong retail sales dominated the picture, with dealers accounting for a record market share, as they increased their volumes year on year by 5.1% to 4.28 million, equivalent to 57.8% of the total. Private-to-private sales market share declined marginally to 38%.

Continued value growth saw the used car market value climb by £4.6 billion to an all-time high of £42.7 billion, outperforming the total new car market value by £6 billion, according to the annual BCA Used Car Market Report, now in its 24th edition.

Meanwhile average fleet and lease used car values have been rising largely as a result of an imbalance in supply and demand. As the economy improves, there is a greater demand from motorists to change their existing vehicle, yet supplies of good, retail quality cars in the wholesale sector are invariably limited – a legacy of prolonged lower new car sales following the onset of the recession.

This has resulted in some significant rises in average value across the used car market. Cars from fleet and lease sources have seen average values at auction increase significantly, rising by £1,663 or 21.1% over the past 24 months.

Average mileage and age has increased slightly, while average performance against Manufacturer Recommended Price (MRP) is up nearly a point year on year, and over three points higher than 2012.

The report, authored by Peter Cooke Emeritus Professor, Centre for Automotive Management, University of Buckingham Business School, says that an improving economy and a better selection of “younger” used cars in the marketplace has helped to stimulate demand.

The report also includes bespoke consumer research on UK motorists and their used car buying habits.   

Sales of “younger” cars rise

The rise in value was stimulated by increased sales of used cars aged up to five years old, which accounted for over half of cars sold by retail dealers in 2013. The number of “younger” used cars sold rose by 6.5% to 2.75 million last year, although volumes remain some way off the peak recorded back in 2006. Improving new car volumes should begin to ease the long term shortage of 0-5 year old used cars.

Average used car values rise

Overall average used car selling prices rose to £5,764 in 2013 from £5,352 the previous year. A car brought from a dealers averaged £7,660 last year, a rise of £688 over the year. In contrast, the average value of a car sold privately dropped by £431 to £2,465.

Numbers of cars on the road

A combination of rising new car registrations and owners running their existing cars for longer resulted in a higher number of cars on UK roads in 2013. The “parc” figure rose by 400,000 and is the first significant rise in 8 years. Further increases in the parc are likely in 2014 and 2015 as the new car market continues to recover.

Average age still rising

The long-term impact of the fall in new car sales during and immediately following the recession can still be seen, with the average age of vehicles on UK roads reaching 7.7 years – the highest figure in over thirty years.  The number of cars reaching their 12th birthday continues to rise at 78.8% with 41.6% now making it to the 15-year mark.

Choosing a used car

Personal experience remains the most powerful influence when choosing a used car, with 28% citing this as important. Views of family and friends are also significant, with 26% choosing this factor, with a test-drive important to 16%.

What influences our search for used cars?

When asked what most influences the way they search for a used car, three out of five of this year’s survey respondents said they were motivated most by “price range”, while two out of five took note of “brand”.

Choosing a dealer

The “right car at the right price” was cited by 39% in this year’s survey, and remains the biggest influence on car buyers when deciding which particular used car retailer to buy from. A quarter of respondents expect a “good deal on the car”, whereas a fifth of motorists look to “deal locally”, “trade in their car” and do business with a “reliable and trustworthy dealer”.

While car owners invariably consider more than one option, the number of car owners looking to do business with a “franchised dealer” rose one point to 49% this year, 46% hoping to trade in their current vehicle. 16% will buy from an “independent used car retailer” and 9% from an “Internet trader”.

Petrol remains most popular choice for next car

When choosing what type of fuel for their next car, a used petrol car is the most popular choice at 38%, followed by a used diesel at 19%. 6% say they will buy a nearly-new car, split 50:50 between petrol and diesel. 3% will buy a used hybrid and 1% a used alternative fuelled (electric) car. 11% will buy new (6% petrol, 4% diesel, 1% alternative).

Buying new or buying used?

Twelve per cent of car owners said they would “certainly” think about buying a new car instead of a used one next time they change, if a low or 0% interest loan was on offer at the time. A further 23% of respondents thought it was “quite likely” they would be interested.

What type of car to buy?

Looking at the type of used car owned, Hatchbacks’ used car market share dropped 5% to 44%. Estates’ popularity increased 4% to 12% and saloons’ share rose 2% to 19%. MPVs share of the market edged up one point to 8%, while Sports/Coupes were static at 6%.

Cars per household drops

The number of families owning at least one car slipped three points to 69% in 2014 – a considerable drop from the record figure of 77% seen in 2010. With the exception of 45-54 year–old respondents, all other age and socio economic groups recorded a fall in their household car ownership ratio this year.

The cars of the future?

When asked 'how they thought technology might affect motoring over the next five years', around half of car owners felt ‘cars will become more fuel efficient with better fuel consumption’ and ‘electric cars will become more commonplace’. A third of respondents believe ‘safety will improve because of automatic braking systems and other driving aids’, while 29% think ‘drivers will become more dependent on visual and audio aids such as parking sensors/cameras and heads-up displays’.