BCA’s latest Pulse report shows that the used car market rallied in August with values rising as supply reduced and professional buyers prepared for the busy autumn period.
Increases in average values were recorded in the Fleet & Lease and Part-Exchange sectors, although average values decreased in the Nearly-New sector – the latter largely as a result of changing model mix over the period.
As a result, the average used car value at BCA recorded a modest increase to £5,905 in August from £5,784 in July. The rise of £121 was equivalent to a 2% increase over the month, while performance against CAP Clean increased by one and a half points to 96.28%.
BCA’s Communications Director Tony Gannon commented “Following a period of softer demand over the peak summer months, the latter part of August saw increasing interest from professional buyers, leading to a welcome improvement in conversion rates and the resultant increase in average values. It is notable that new cars recorded their worst August monthly sales figures for 44 years over the same period and further proof that used cars remain the bedrock of profitability for retail dealers.”
Gannon added “The market is reverting much more to type than we have seen in the previous two years – which really were extraordinary in terms of the fall and subsequent recovery. If the trends continue into September with plenty of demand and reduced supply, prices are likely to remain firm in the short term, at least. However, if this year is seeing a return to the seasonal norms as we firmly believe, then we can expect to see values under more pressure from late September until the Christmas period.”