Used car values hit record high

Continuing shortages in the wholesale used car markets resulted in record Q3 average used car values, according to British Car Auctions.

Continuing shortages in the wholesale used car markets resulted in record Q3 average used car values, according to British Car Autions (BCA).

With an average Q3 price of £6,216, used cars were at their highest level since BCA began reporting in 2005. The figure was up £325 (5.5%) on Q2 and £293 (4.9%) ahead year-on-year.

Fleet and lease values increased to £8,177, another record high, and up year-on-year by £917 (12.6%).

Part exchange values averaged £3,002 – also the highest since record began and up by £159 (5.5%) compared to Q2 and ahead by £304 (11.2%) year-on-year.

‘Fierce competition’

BCA’s communications director Tony Gannon said: "With ongoing economic pressure, rising costs and a relatively weak retail environment, it might seem counter-intuitive to report that used car values continue to climb year-on-year. However, supplies reaching the wholesale used car market are quite significantly down on the peak seen four to five years ago and there is a real shortage of good quality, ready to retail used cars. This is leading to fierce competition and generally rising values for the best examples reaching the remarketing arena.

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Tick here to opt out of curated industry news, reports, and event updates from Motor Finance Online.

Visit our Privacy Policy for more information about our services, how we may use, process and share your personal data, including information of your rights in respect of your personal data and how you can unsubscribe from future marketing communications. Our services are intended for corporate subscribers and you warrant that the email address submitted is your corporate email address.

"This stock shortage is a long-term issue and is unlikely to change until new car volumes pick up significantly and the economy improves enough to generate a bigger churn of vehicles in the marketplace. This doesn’t diminish the effect of the typical seasonal pressures, of course, which have seen values and conversions weaken in early October.

"Quarter 3 saw a ‘richer’ mix of used cars compared to Q2, with fleet and lease volumes representing a slightly increased proportion compared to part exchange volumes."