USED car values tumbled in the second quarter of 2008.
That’s the finding from BCA’s quarterly Pulse Report: indeed, the nine-point fall is the biggest in over three years.
Year-on-year data is even more depressing. Values have now stalled, and recovery in the next two quarters seems unlikely.
Overall, used car values are £390 down compared to the preceding quarter. This means the BCA Index has taken a hammering – while it is still two points ahead of 2007, this seems unlikely to last.
June was a particularly bad month. Every sector fell compared to May. Fleet and lease were down three per cent, part-exchanges an even larger five per cent. Average against CAP clean was also down in every single sector.
Commenting on all this gloomy news, BCA communications director Tony Gannon said: ‘It is no surprise to see values under pressure in Quarter 2 – we have seen average prices fall in the same period in previous years, although not as far or as fast.’
‘What is more important now is seeing if the market will bounce back in quarter three, as it has in previous years. This makes next quarter’s Index figure critical for industry watchers hoping to predict the medium to long-term prospects for used car values – and by inference – used car demand.’
Gannon confirmed what we already know: ‘June was a particularly tough month and we expect to report more of the same for July.’
‘Despite this, the demand is still there for good quality product, if it is valued in line with market sentiment.’ Trouble is, that sentiment has hit rock-bottom…