Used car values at BCA fell 5.9% month-on-month in March in a “tough but functioning” market.

March values fell by £595 (5.9%) compared to February, but remain well ahead year-on-year, up by 17.3% (£1,391) against March 2021

The £595 decline brought the average value down to £9,340, although the market remains ahead year-on-year, up by 17.3% (£1,391) against March 2021.

Demand had lifted during the month, following the downward movement by the guides earlier in March. But average values closed out the month in a more negative position than reflected in the guides.

The market adjustment particularly affected those with “unrealistic expectations, or missing provenance” while the best-quality and prepared vehicles continued to be more in demand.

BCA UK COO Stuart Pearson commented: “Last month we raised concerns that sellers and buyers ran the risk of drifting apart in March, and whilst there was an initial positive step, the reality is that by the end of the month things were drifting again, with the final published move into April falling well short of what the overall market was seeing.

“There is no doubt that things have got tougher for used car retailers due to the pressures on consumers’ wallets and that is bound to have an impact in the wholesale sector.  This is where the value of real-time, daily updated valuation systems can add real “pounds (£)” value and our valuations team have been working closely with our customers to ensure that vehicles are valued in line with market expectations.”

Pearson added: “With March 2022 recording the weakest performance for new car sales since 1998, there is no need for panic as diminished supply should ensure that used values remain fairly resilient, although there is definitely room for some further balanced corrections over the next couple of months.”

BCA continues to trade exclusively online and last month saw it launch a suite of new digital tools, including major digital upgrades to BCA Search, Partner Finance Online, MyBCA Selling and Online Proxy Bidding.

Pearson continued: “These latest upgrades help our customers control every stage of their interactions with BCA, saving time and driving efficiencies into the digital sales process.”