Average used car values at BCA fell 2.5% in August as the market remained challenging, but buyer demand was high.

The shortage of desirable three to four-year-old product continues to impact vehicle mix

Despite the moving market, demand remained reasonably consistent; sold used car volumes at BCA in August rose to the highest point since March of this year.

BCA UK COO Stuart Pearson commented: “Buyer feedback suggests that the retail landscape remains challenging and often inconsistent, not untypical at this time of year, but no doubt exacerbated by the continuing tough economic conditions generally. As a result, it is therefore no surprise that tactical campaigns to stimulate footfall can apply pressure within the wholesale market and therefore we’ve seen prices moving.”

The shortage of desirable three to four-year-old product continues to be a significant factor impacting mix and as a result competition remains strong for the best examples, with many reaching values well in excess of expectations.

“Conversely, the poorer-graded vehicles have needed very close pricing attention with a clear focus on the remarketing basics required to find them a new home the first time they are offered for sale.”

Pearson finished: “All things considered, the market feels like it is in reasonably good shape to manoeuvre through the forthcoming months. Stock levels are lifting and there is an optimism that consumers will become more engaged as inflation falls. The trade is well practised at reacting quickly when they sense opportunity and, with some signs of improvement in the broader economy, this could be just around the corner.”