The latest data released by BCA shows a continuation of value gains for used cars into the second quarter of 2014.
The quarterly data from BCA shows fairly modest gains in average used car values when compared to Q1 2014; a £174 increase. However, in the previous two years Q2 values declined against the first quarter of the year, reflecting increased supply following new registrations in March. 2014’s value rise in Q2 bucks this trend, and as a result average values are up 10.1% (£696) when a year-on-year comparison is applied. The auction giant notes that while values are rising, both average age and mileage are falling.
Simon Henstock, BCA’s UK Operations Director commented “Average used car values have been rising largely as a result of an imbalance in supply and demand. As the economy improves, there is a greater demand from motorists to change their existing vehicle, yet supplies of good, retail quality cars in the wholesale sector are relatively limited – a legacy of the lower new car sales following the onset of the recession.”
He added “This has resulted in some significant rises in average value across the used car market, which is highlighted when you look at the longer term trends. Dealer part-exchange cars sold by BCA are averaging 40% more in 2014 than they were in the same period in 2012, while fleet & lease cars are up by 21% over the same timescale. Some of this will be down to model mix, but much of it is sheer demand in a competitive marketplace.”
The BCA data highlighs individual market segments including : “Cars sold from fleet & lease sources” where average values increase by £784 (8.9%) over the past 12 months. “Dealer part-exchange” where values averaged over £4,000 for the first time on record in Q2 14, and were up £334 (9.1%) compared to a year ago, and up a staggering 40.7% compared to Q2 2012. Finally, in the “nearly new” segment, values rose by £1,820 (9.4%) over the past year.
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