Demand for used cars has become “frantic” according to experts, with the auction centres seeing strong activity from both retail and dealer buyers.

CAP said in its latest Black Book analysis that there are no signs of the situation changing soon.

“Manufacturers are consistently confirming that there is very little late plate stock on the way and closed or invitation-only sales are seeing bidding activity that can be described, without exaggeration, as frantic,” it said.

“Research indicates that the clamour for stock at auction is even stronger than during the remarkable first three months of the year.”

A recent sale of usually undesirable ex-police cars saw buyers “forced to buy reconditioning work or face the prospect of losing retail customers thanks to too many empty forecourt spaces”.

The two largest auction houses agree that demand continues to push prices up.

Values achieved last month at Manheim rose by 3% (£202) - the fifth month-on-month increase in the past six months - although values of ex-fleet cars increased by just 1.6% (£100).

Mike Pilkington, managing director of Manheim Auctions and Remarketing told Fleet News that the positive situation will last, with none of the drama of last year’s crash predicted.

“I don’t think we will see the trauma in prices that we had in the last six months of 2008. There will be some seasonal adjustments but there will be no seismic shifts in prices,” he said.

“Stock will remain in short supply, and it could be for up to the next two years – there’s just not a great deal of stock around.”

BCA also saw values rise in June, by £77 to £5,850, compared to £5,773 in May. Year-on-year values are now 14.3% ahead of this time last year.

“Stock levels remain relatively low, and certainly behind normal levels for the current period in previous years,” said BCA’s communications director Tony Gannon.

The independent auction centres are also seeing strong activity. Scottish Motor Auctions reports a year-on-year growth of more than 10%.

The auction group is currently auctioning more than 25,000 cars per month across its four sites in Kinross, Livingstone, Newcastle and Leeds.