5:48 pm, October 15, 2008
EVIDENCE that buyers are shifting from new into used cars comes from the latest market data out of BCA.
During September, a small increase was recorded in the average value of used cars.
It’s modest – just 1 per cent – but does stem a series of losses that have run since May.
BCA is cautious about the upturn, pointing out that September is traditionally a strong month for average values. It also notes that year-on-year values remain well behind 2007.
However, as the company’s Tony Gannon said, ‘September’s average values offered some relief for vendors as prices crept up, even if only marginally.
‘While it would be foolhardy to suggest this heralds a recovery for used market prices, it was a welcome change from what we have seen in recent months.’
He is at pains to ensure the full scale of this year’s losses are not overlooked, though. ‘It is the third month running that the average auction value has been below the £5,000 threshold and, compared to earlier in the year, values remain down by around £1,000.
Year-on-year values are behind by a similar amount. ‘In previous years, September has heralded a significant rise in average prices and that simply has not happened this year.’
Which cars put in the strongest performance? Fleet & lease cars, which rose by £71. Nearly-new cars, on the other hand, continued to fall, although the loss was reduced to £8, against an average rise of £47.
It is far from an upturn, but against such a gloomy new sector, the used situation at auction is a little brighter – and any glimmer of positive news is very welcome indeed…
