10:08 am, January 20, 2014
AVERAGE used car values at BCA continued to increase in 2013 due to strong buyer demand and an on going shortage of good quality retail stock.
Across the board, the average value of a used car sold at BCA in 2013 was £7,056 – a rise of 13.8 per cent in comparison to 2012.
Meanwhile, average age and mileage declined to 61 months and 56,000 miles respectively last year, reversing the trend of the previous three years, which saw both age and mileage increase.
The average performance against CAP Clean also climbed by nearly half a point to 96.87 per cent.
When looking at monthly values during 2013, the peak month value was December where a combination of a short trading month and reduced supply resulted in record values. Meanwhile, April recorded the lowest monthly value in the annual cycle for the second year running.
The fleet and lease, dealer part-exchange and nearly-new sectors all posted value increases over 2012, with part-exchange values rising by 23.9 per cent and Fleet and Lease cars rising by an average of 11.3 per cent.
Simon Henstock, BCA UK’s operations director, said: ‘Average values continued to surge to record levels in the used car market in 2013 and the year-on-year figures showed a substantial increase of nearly 14 per cent over 2012, underlining the on-going value evolution in the used car market.
‘Live Online buyers were very active during the final months of the year and our Bid Now/Buy Now channels saw sales volumes climb. With the ongoing dearth of retail-quality stock, professional buyers were bidding very competitively on the best vehicles and prices climbed as a result.’
He added: ‘Looking ahead, our view is that the overall shortage of used product and the issues of supply versus demand will see a continuation of high conversions and higher selling prices in 2014, meaning we are going to see more of what is best described as a “sellers’ market”.
‘However, this does not mean sellers have carte blanche to ignore remarketing best practice. Even when demand is high, it is important to evaluate and appraise stock sensibly. The most successful vendors recognise that condition and grade have a critical role to play in valuing vehicles, rather than just using the price guides in isolation.’
