British Car Auctions Pulse Report shows that supply issues continue to dominate used car sector
According to the latest data from leading vehicle auction company, British Car Auctions (BCA), the value of cars in September 2012 averaged £6,315 – an increase of £157 (2.5%) over August’s figure. This was also a modest 1% increase year-on-year, despite the fact that cars for sale this year are on average older and higher mileage.
On-going supply issues, with a lack of good quality vehicles coming onto the market, are a key factor influencing prices, as BCA Communications Director, Tony Gannon, explained: “There is no question that September enjoyed higher levels of demand than we had seen since the Spring, resulting in record breaking average values. But it is important to place these figures in context. With stock remaining thin on the ground, buyer demand is focused on the best quality vehicles and this is driving values up. Over the coming weeks, we expect to see some pressure on values as volumes rise in the wholesale sector and retail demand softens in the run-up to the year end.”
There were value rises in each of the individual product sectors. Average fleet & lease car values improved by £185 compared to August to reach a new record monthly value of £8,339 – the fifth consecutive month that a record value has been established. Year-on-year, the fleet & lease sector again posted double digit improvements, the fourth month in a row this has happened.
Having virtually stalled in August, average part-exchange values increased sharply by £162 in September, representing a 5.5% increase over the previous month and breaking the £3,000 barrier for the first time on record. Nearly-new values also posted an improvement.