According to British Car Auctions, used car values are rising.
The group’s latest Pulse Report has revealed that stock shortages are generating significantly higher used car valuations, given that fewer vehicles are coming top auction.
BCA’s figures show that average car values increased to £6,180 in July from £5,964 in June. To put things into perspective, the year-on-year figure rates £547 (9.7 per cent) higher than the same month last year.
Part-exchange values posted a £75 month-on-month rise, to reach £2,949 – also the highest average value on record since Pulse began reporting. Nearly-new values improved by £780, largely as a result of changing model mix in this low volume sector.
BCA’s Communications Director Tony Gannon commented, “Supplies reaching the wholesale used car market are quite significantly down on the peak seen four to five 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.”
“The real shortage is of good quality, ready to retail used cars, which is leading to fierce competition and generally rising values for the best examples reaching the remarketing arena. Dealers need cars to sell and they are increasingly looking at online routes to increase their stocking options.”
The situation is fluid though. Some industry analysts expect an influx of cars to be to be forced on the UK market from southern European in September, which should see demand fall.No Comments