Average values at BCA up 76% post-lockdown as used car demand rockets
Used car values at BCA rose 75.7% in June compared to April, illustrating the rocketing – and trend-bucking – demand being seen in the industry.
The data shows values averaged £8,565 over the month, an improvement of 14.0% (£1,029) compared to May but rising to a 75.7% increase, equivalent to an improvement to £3,689.
The figures, which mark a full quarter of used vehicle pricing data now available since lockdown was imposed on the UK, illustrate how many dealers have returned to the market following their businesses reopening on 1 June.
BCA COO UK remarketing Stuart Pearson said the new data highlights how the momentum reported by BCA for May has continued into June.
He added that BCA – which switched to online-only sales on 25 March – has expanded its online remarketing programme significantly to meet the demand, running up to 20 sales in parallel at any one time, backed by social distancing.
“Daily entries are now often exceeding 5,000 vehicles and demand across most sectors is ahead of what we would typically see at this time of year,” Pearson continued.
He added: “June was notable for the upswing in demand for higher value, retail ready vehicles which significantly influenced the overall average price performance – it was no surprise that this coincided with the reopening of many franchised dealerships and car supermarkets. Demand for lower-value, budget vehicles remained incredibly buoyant throughout the month, maintaining the trend we have seen since the first days of lockdown and resulting in some unprecedented price increases.”
Pearson concluded: “As the month progressed, most areas of the market stabilised and some of the niche product, achieved exceptional prices. With many retailers having furloughed mechanic and body shop staff it was notable that higher grade, well-presented vehicles with full histories and clean BCA Assured reports have been at a premium.”