The used car market remained steady in April but sellers need to pay heed to condition, says BCA.

Used car values at BCA averaged £7,508 in April, down just 0.2% or £14 on March’s figure

Its data for April reveals used car values averaged £7,508 in April, down just 0.2% or £14 on March’s figure. Sold volumes and conversion rates remained consistent for the fourth month running, while buyer numbers continued to rise steadily.

Wholesale activity remained positive in the post-Easter period, with very healthy levels of buyer engagement, confident bidding and stable conversion rates.

Anecdotal buyer feedback suggests that used retail demand remains generally good, but a number of retailers have told BCA that it can be challenging to secure the most desirable stock for their forecourts. Many dealers still have the capacity to increase stock levels further – which means wholesale demand is likely to remain steady over the coming weeks.

Condition remains paramount, however, and dealers continue to focus their attention on the best-presented vehicles that can be retailed quickly.

The used sector remains short of desirable 2- to 4-year old product, an ongoing legacy from the pandemic and demand remains particularly positive in this sector, with many models outperforming price guide expectations.

Older, higher-mileage vehicles remain under pressure, with values moving more quickly and mechanical condition being the key factor impacting price. Lower-graded vehicles in poorer condition requiring repair and cosmetic refurbishment need to be valued realistically if they are to attract the buyers and the ongoing national shortage of vehicle repair capacity continues to impact this budget end of the market.

Stuart Pearson, BCA chief operating officer, commented: “Whilst it is pleasing to be able to report on a fourth successive month of stability in the used car sector, as always the devil is in the detail and there are a lot of moving parts across the marketplace. The value gap between high demand, well-presented younger cars and poorer condition, typically older and higher mileage examples continues to widen, because buyers are factoring in the potential for delay in getting repairs and refurbishment carried out.”

Pearson added that pre-sale remedial work to enhance condition could deliver big gains.

“By lifting the condition grade and presenting a better quality of product to the marketplace, this can reduce the time to sale significantly as well as improving residual values – a real win-win scenario for sellers and presenting buyers with a wider choice of the higher quality stock they want for their forecourts,” he outlined.

The outlook remains positive too. BCA’s COO concluded: “Against a steadily improving economic background and some encouraging noises from the Bank of England on interest rates, our buyer customers are quietly confident of continued retail demand for used cars and that is being reflected in activity in the wholesale sector.”