8:08 am, October 1, 2011
THE overall value of used cars sold last year reached a record breaking £35bn a BCA report has shown.
Figures released from the 2011 Used Car Market Report published by BCA and written by Professor Peter Cooke show that an extra 270,000 used cars were sold last year compared to 2009, generating an additional £800m in value.
Dealers’ and private-to-private used car volumes both fared well in 2010 – dealers’ sales were up by 3.9 per cent to 3.67 million units, and private sector volumes 10.8 per cent higher at 2.46m as the market reached 6.6m units.
The average used car selling price slipped year on year, however, from £5,422 in 2009 to £5,332 in 2010, reflecting the changing mix of the used car supply in the UK.
The report highlights that the UK car parc is ageing as fewer new cars have been sold since the economic crash of 2008.
Underlining this trend, it was improving sales of cars in the six-eight year age group that helped used car market volumes rise by 4.3 per cent last year. In contrast, sales of younger used cars – 0 to two years – fell back by 6.9 per cent resulting in a reduced market share. Sales of cars in the three-five year age group also slipped – by 2.3 per cent to 1.84m.
Looking ahead, the report also suggests that a lack of supply of good quality two-five year old used cars is a significant concern for the UK motor industry.
Since the 2008 economic crash, around 500,000 fewer new cars are sold every year and industry forecasts suggest this pattern is unlikely to change before 2012.
While the number of cars in the UK will remain around 30m units for the foreseeable future, the parc is ageing rapidly and ‘younger’ used cars will become an increasingly scarce commodity.
‘The simple fact is the UK car parc is getting older, as fewer new cars are sold and both motorists and businesses have held onto their vehicles for longer’ said Tony Gannon, communications director, BCA.
‘The average age of cars on UK roads rose in 2010 to 7.25 years, which is a 14 year high. The trend for older cars is rising and we believe this could continue for several years to come.’
