#value of used cars
Used car values fall for third consecutive month
The average value of a used car in February fell by 1.7% to £7,814 compared to January, according to the monthly BCA Pulse Report
It was the third consecutive month of decline although year on year values were up 6.6%.
Values of used cars are set to soften further as higher volumes enter the market during the busy March plate-change month.
BCA’s UK operations director Simon Henstock said: “Levels of trade were steady during February, with plenty of interest in retail ready cars, but buyers were rather more wary of poorer condition vehicles.
“With a greater volume of stock expected to reach the marketplace in 2015, buyers have a lot more choice and vehicles requiring repair and refurbishment need to be sensibly valued to compete. For cars with cosmetic damage, SMART repairs are a cost effective option for sellers, meaning their vehicles can be quickly processed and presented in the best possible condition.”
“Looking ahead, most commentators are expecting a strong March for new car sales and, as every new car sale typically generates a chain of used car activity, there will be greater volumes from fleet and contract hire sources as well as increasing numbers of dealer part-exchange vehicles. This could impact on residual values in the weeks ahead and BCA is recommending that volume vendors appraise their sale stock closely to ensure it is valued in line with market expectations.”
Henstock said further softening could be expected in in the run up to Easter and with the General Election on 7 May.
“In addition, the Easter break and the spring Bank Holiday are nearly upon us and the dynamics of the wholesale market are likely to change over the coming weeks. Retail demand typically softens post-Easter as the focus turns towards the summer holiday rather than changing the family car.
“The General Election also begins to loom large on the horizon, and we should expect a little uncertainty in the wholesale markets in the run up to May 7th.