Shortage of stock has seen values in the
used car market recover
from their recent dip, British Car Auctions (BCA) has
revealed.
BCA’s recent Pulse Report posted a 9.7% (£547)
year-on-year increase in used car values for July;
a 3.6% increase, month-on-month.
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The fleet/lease and part-exchange sectors saw the biggest rises
with 15.0% and 10.3% year-on-year value increases,
respectively.
Average used car values increased £216 between June
(£5,964) and July (£6,180) as average age and mileage
fell marginally to 62 months and 59,00miles,
respectively. July also saw used cars averaging 96.94%
of trade guide prices; up by almost 0.1% (a point) compared to
June.
Fleet and part-exchange set new records
Average fleet and lease values reached
the highest monthly value on record with £8,053 – an £11 increase
on June’s figure. Part-exchange values also peaked to the highest
average value on record since the origin of BCA’s Pulse Reports
with a £75 month-on-month rise, reaching £2,949.
Tony Gannon, BCA’s communications director,
said that while it may appear counterintuitive to see used values
rising so “sharply” year-on-year in view of the continued
challenging economic environment, supplies reaching the wholesale
used car market are significantly down from the peak made four
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.”
Gannon also reported the rise in volume sales
via online options such as BCA’s Bid Now, Buy Now and e-Auction
channels. “Dealers need cars to sell,” he said,
“and they are increasingly looking at online routes to
increase their stocking options.”
Extended data and analysis from BCA will be published in the
August issue of
Motor Finance
magazine.
