The latest Pulse report from BCA (British Car Auctions) reveals that the used market is settling back into a more typical seasonal pattern as average used car values edged up in September.
Although the average increase over August was nominal – values across the board increased by just £33 – there was a significant rise in values in the fleet & lease sector, with more modest increases in part-exchange and nearly-new values over the month.
The average used car value at BCA climbed to £5,938 in September from £5,905 in August – equivalent to just over a half percent increase over the month.
The figures come against a backdrop of a new car market that is continuing to slow, with September falling 8.9% to 335,246 units – the second lowest volume for the month since 1999 when twice yearly registrations began.
BCA’s UK Operations Director Simon Henstock commented “Although September has not seen the big value rises that were typical of the pre-recession era, much of that was due to August being so strong, with many buyers seeking to acquire stock ahead of the anticipated September rush. Even so, prices did improve and the month saw a good level of interest from professional buyers, with conversion rates continuing to climb for many vendors. Sold volumes increased by around 4.5%, with much of that increase coming from the part-exchange sector.”
“With new car sales continuing to be slow, dealers are looking to used cars to deliver profitable retail opportunities. Demand remains high for cars in good, ready-to-retail condition and values for the best examples can outstrip guide expectations by hundreds or even thousands of pounds.”
Henstock added “Despite there still being talk of recessionary issues and details of the spending review have yet to be announced, demand remains relatively strong in the used car market and the wholesale sector is trading with some confidence. We are likely to see values under a little more pressure from now until the Christmas period, but certainly no return to the dramatic falls we experienced two years ago.”