View all newsletters
Receive our newsletter – data, insights and analysis delivered to you
  1. Analysis
July 31, 2012updated 12 Apr 2017 11:46am

BCA’s £231m in ‘recession-proof’ prestige market

British Car Auctions (BCA) has recorded £231.4m in sales of upper executive, sports and luxury cars in the opening six months of the year. The remarketing company sold 8,356 cars over £20,000 from January to June 2012, at an average 102.57% of CAP clean, mainly through BCA sales at Blackbushe and Nottingham Between £20,000 and £69,999, and over £110,000, all average prices (by £10,000 band) broke 100% CAP clean, although the average price for each band from £70,000 to £109,999 failed to reach 100% CAP clean.

By Richard Irvine-Brown

British Car Auctions (BCA) has recorded £231.4m in sales of upper executive, sports and luxury cars in the opening six months of the year.

The remarketing company sold 8,356 cars over £20,000 from January to June 2012, at an average 102.57% of CAP clean, mainly through BCA sales at Blackbushe and Nottingham.

Between £20,000 and £69,999, and over £110,000, all average prices (by £10,000 band) broke 100% CAP clean, although the average price for each band from £70,000 to £109,999 failed to reach 100% CAP clean.

Tony Gannon, BCA communications director, said it was a “peculiarity of the economic downturn that demand for high value cars has remained high over the past two years.

“Despite the difficult economic conditions, the market for high value prestige vehicles is exceptionally buoyant, with buyers prepared to invest six-figures for the right vehicle.”

‘Recession proof’

Commenting on the results, Tim Marlow, owner of independent prestige vehicle financer Bridford, which specialises in cars costing from £25,000 to hundreds of thousands, said: “The prestige, luxury and top end sports supercar market has remained very strong over the last few years despite the overall slow down in the global economy.

“Customers who can afford to buy and maintain top end cars like Ferraris, Bentleys and Rolls Royces are, on the whole, ‘recession proof’ because their wealth is so great that the general rising cost of living barely affects them.”

Marlow and Bridford previously reported a new ‘spike’ in finance deals for luxury cars in March, a high which also attracted Investec to the prestige market.

Similarly, Richard Lawton, marketing manager of ReallyGoodDomains.com, which runs MainDealerOffers.co.uk and CarAndVanAuctions.co.uk, told Motor Finance the market for high-end motoring was on the rise, despite the recession.

“It’s absolutely booming. In times of recession, people at the top end get richer. The gap between rich and poor probably expands.”

Lawton pointed to activities by brands such as McLaren, Bentley and Eterniti as evidence of the appetite for opulence on UK roads.

“It’s not just this country. China at the moment can’t get enough of really high-end, luxury vehicles.”

Further comments and data on the prestige and prestige auction market will be published in the August issue of Motor Finance magazine.

richard.brown@vrlfinancialnews.com

NEWSLETTER Sign up Tick the boxes of the newsletters you would like to receive. A weekly roundup of the latest news and analysis, sent every Thursday. The industry's most comprehensive news and information delivered every month.
I consent to GlobalData UK Limited collecting my details provided via this form in accordance with the Privacy Policy
SUBSCRIBED

THANK YOU

Thank you for subscribing to Motor Finance Online