Used car values steady in May as buyers begin to see past the lockdown

Used car values have steadily increased throughout May as buyers have begun to see beyond lockdown measures.

In figures released today by auction house BCA, the weekly average sold value has increased from a low of £4,568 in the first week of April to a high of £8,788 in the fourth week of May.

Sales in April held fairly steady, but they have continued to rise every week in May.

The auction house said the values have been strengthened by the number of online bidders participating in its Virtual Sales climbing ‘significantly’.

BCA introduced its Virtual Sales system in the first week of April following the government putting the country into lockdown on March 23.

It has been tracking sales data throughout, noting that cars sold post-lockdown were around six months older and had covered 10,000 more miles than those sold before.

However, as the weeks have passed, BCA notes that higher value, younger vehicles have become more popular.

BCA’s Stuart Pearson said: ‘There has been a huge amount of customer interaction through our online channels, with activity growing daily and some Virtual Sales seeing buyer participation ahead of those seen in pre-lockdown conditions. 

‘We have seen demand grow steadily for stock, with acceleration through differing price points throughout the period. In the initial stages, buyers were very much focussed around lower value vehicles, however as more buyers enter the market, we’re seeing greater stability across all sectors.

‘With traditional business models needing to change, the remarketing sector is quickly evolving and BCA will continue to look for innovative ways to support its customers during the months ahead.’

Earlier this week, Car Dealer Magazine reported that used car prices could fall by as much as seven per cent over the next year as consumers tighten their belts and the market enters a volatile period.

In an exclusive Car Dealer Live interview (which you can watch in full below), experts from used car trade valuation experts CAP HPI said that prices of older models have fallen around five per cent during lockdown – but they still haven’t adjusted prices of newer used cars.

Those adjustments could come within the next month as car dealers reopen on Monday and auction houses get back up to full speed from June 15.

Used car prices could drop seven per cent in next 12 months and it may take three years to get back to normal