Used car marketplace BCA has reported a 3.8% drop in wholesale used car values in November.
Averaging at £8,492, used car values fell by £331 in comparison with October as BCA witnessed a strong customer interest in the budget end (sub £4,000 category) of the marketplace.
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The level of customer interaction across BCA’s online sales programme remained high, and first-time conversion rates increased once more in November, averaging over 80%.
For the past two months in a row, the average selling price has decreased.
It was influenced by the variety of stock that BCA sold, with a higher percentage of older, lower-value cars making up the total.
Within the wholesale market, the impact of seasonality can also be seen, BCA said, adding that one area of weakness this month was the performance of electric vehicles, with guidance price performance being severely impacted.
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By GlobalDataBCA UK COO Stuart Pearson said: “The cost of living crisis, inflation and higher interest rates are likely to be driving the increased activity levels in the budget sector, as motorists needing a used car will be balancing their household budgets with the cost of a replacement vehicle.
“This change in model mix has naturally impacted the headline average value, however the devil is always in the detail with a number of sectors continuing to perform well, and others starting to be impacted.
“With more new model electric vehicles entering the market, used values for EVs are really in the spotlight, and therefore it’s not surprising to see some pricing realignment as the cycle of 3-year-old product returns.
“We have also been spoilt with a long run of pricing resilience which can make any shift seem more dramatic, so at a time when household budgets are under as much pressure as anyone will remember, we are working closer than ever to keep our sellers and buyers aligned to keep the market moving.”
