The prices of used vehicles in the UK are being inflated by overseas demand, according to vehicle valuation firm CAP.

Second-hand cars, trucks, trailers, vans and motorbikes earmarked for export to Africa, Australasia and East Asia are selling at prices far in excess of CAP valuations.

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The vehicle information supplier identified the Audi Q7, BMW Mini Cooper and Citroën C8 as models attracting inflated prices in particular.

Pounds and Yen

CAP believes the rise in demand, and consequent values, is due to a combination of the falling value of sterling, cheaper running costs for particular models in particular markets and the rise in UK car manufacturing making up for the loss of production in Japan since the 2011 tsunami.

While making export prices more competitive, the impact of the dropping value of the pound could have a "profound" affect on UK forecourts, said Duncan Aldred, chairman of Vauxhall at the Geneva Motor Show last week.

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According to CAP, cheaper fuel costs abroad have led to increased demand for mid-sized and / or executive models which are cheaper to run outside of the UK, with New Zealand in particular a target market. Similarly, Roger Woodward, managing director of CD Auction Group, speaking to Motor Finance, identified New Zealand as becoming a "prominent" export market in the past 18 months.

CAP also pointed to rising demand in eastern Europe for older and damaged 4x4s for use as spare parts.

Following the 2011 disaster in Japan which caused vehicle exports to drop by 80%, UK production and retail of Japanese brands has filled in. Nissan Europe, for example, has outlined a "product assault" on European markets, where the Sunderland-built Qashqai and Juke have sold well in the new market. At the same time, the rising value of the Yen has made it difficult for other Japanese manufacturers to export vehicles.

richard.brown@timetric.com