Average used car values pass £10k at BCA
Average monthly used car values at BCA have exceeded £10,000, setting a new high and expected to rise further over the coming months.
While used car activity is typically slower in August, values actually rose 6.7% from July, hitting the new high of £10,153 last month – the highest-ever level under BCA’s current format of reporting. Year-on-year, it’s up by 26.2% from the £8,046 seen in August 2020.
It’s the latest evidence of the continued impact of the semiconductor shortage, which is hitting new car sales through supply shortages and seeing buyers increasingly turning to the used market. New car registrations last month fell to a level not seen since August 2013 and were down 7.6% against the average recorded over the last decade.
Stuart Pearson, COO BCA UK, commented: “The current dynamics seen in the used vehicle sector are very much amplified by challenges around new car supply, and we’ve seen high levels of buying activity from the franchised dealer sector at a time when traditionally they would have been focused on preparing for the new plate change.”
Current predictions are that the semiconductor supply crunch will continue into early 2022 and its effects on the used market are likely to continue cascading for some time further.
Pearson added: “Buyers are also diversifying to make the most of the current retail activity levels and their purchasing is rippling through the whole value chain. Whilst older stock has been fairly stable for a number of months, this sector is also now starting to shift upwards when normally the market would be easing back on the run towards Christmas.”
He concluded: “We’ve reported record price levels for three consecutive months, and looking at the value progression across the used car sector during August and into the first few weeks of September, average values are likely to shift to another new level that probably once didn’t seem possible. In all likelihood there will be no letting up for some months to come.”