Values have climbed steadily this year, recording a market-wide average of £6,180 in July, up £216 (3.6%) compared to June and £547 (9.7%) year on year. Performance against CAP Clean averaged 96.94, up nearly a point, while age and mileage fell slightly to 62 months and 59,000 miles.

The fleet and leasing sector is proving particularly buoyant. Average values reached £8,053 in July, up 15% compared to the same month in 2011 and the highest since BCA’s Pulse Report began in 2005. Stock had an average age of 40.9 months and 49,805 miles, decreases of 0.6% and 3.1% respectively, while values against CAP Clean increased from 95.98% to 97.43% year on year.

BCA’s communications director Tony Gannon explained: ‘Supplies reaching the wholesale used car market are quite significantly down on the peak seen four to five years ago.  The combination of lower new car sales and the tendency for vehicle owners to extend their replacement cycles simply means less stock is available to be sold.

‘This stock shortage is a long term issue and is unlikely to change until new car volumes pick up significantly and the economy improves enough to generate a bigger churn of vehicles in the marketplace.  This doesn’t diminish the effect of the typical seasonal pressures, of course, and there will be the usual volume uplift in September and October that sellers should be planning for now.’