Analysis
Jigsaw Finance’s Nigel Hawkins gives his observations of the PCP market
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Auctions reported a fall in auction prices compared to May of around 2.3% as the market reached the seasonal low point for the year. Saying this, year on year values remain ahead in the region of 11% to 15% depending on the experience of the individual auction house.
The strength of the used market is surprising given the considerable increase in new vehicle sales which traditionally would have caused a greater level of depreciation in used car values as demand faltered.
It appears evident the retail market has quietened down with both franchised and non-franchised dealers reporting lower sales and a significant downturn in footfall as holidays have kicked in.
This coupled with the preparation for the 63 plate will probably result in a quieter August period prior to the market returning in September with a fresh batch of part exchanges.
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By GlobalDataBCA recommended that although demand from professional buyers remains relatively strong, vendors should be valuing stock realistically as volumes will inevitably rise in the weeks ahead.
Quality retail stock is still short according to most auctions with the better presented cars making values well in excess of guide price expectations.
