BCA has reported average used car values fell in October – a sign that the used market is taking its seasonal shape.
The auction house’s latest Pulse report showed that average used car values dropped by 2.5 per cent (£146) last month, and is following its traditional seasonal shape.
Economic uncertainty is the reason believes BCA, but supply issues are still affecting the marketplace.
October’s volumes being down by around 5 per cent compared to September and respectable levels of demand is helping to keep values relatively stable.
BCA reports that values in the fleet and lease sector were hit the hardest in October – down by 3.8 per cent or £292 – and part-exchange values remained flat.
This is in contrast to Manheim Remarketing, who reported experiencing a rise in both fleet and part-exchange values.
However, both are agreed that demand outstripping supply is keeping the market relatively buoyant.
BCA’s communications director, Tony Gannon, said: ‘October has heralded the typical slowing in demand that the market usually experiences in the run-up to the Christmas period.
‘However, the effect has been tempered this year by the continuing shortage of retail quality stock – the competitive pressure for the best examples in the wholesale arena has meant average values are probably stronger than expected.
‘Used cars continue to be the battleground for dealer profitability and this will remain the case while new car retail sales continue to be slow.’
by JAMES BATCHELOR