Used car values at BCA remained stable for the third month running, bolstered by record buyer numbers.

Following the big falls seen across the remarketing sector in Q4 2023, values at BCA averaged £7,522 in March, down 0.6% (£42) compared to February, with sold volumes and conversion levels also remaining consistent.

Activity remained positive over the Easter period – typically seen as a watershed in demand – with the week running up to the double bank holiday attracting significant interest and healthy conversion rates.

The number of active monthly buyers reached the highest figure recorded since the sales programme moved online in the early weeks of the pandemic in 2020, underlining the accessibility of BCA’s online remarketing programme.

Used retail activity continued to be generally positive across the Easter period, according to anecdotal reports from BCA’s customer base, and many still have the capacity to increase stock levels subject to the market remaining stable.

However, while demand remains particularly positive for two- to four-year old products on the back of continued shortages, pressure remains on older, higher-mileage vehicles, with values moving more quickly and mechanical condition being the key factor impacting price.

Stuart Pearson, BCA COO, commented: “A word of caution remains around any stock that is in average-to-poor mechanical condition, as the ongoing backlog for parts and general service availability continues to stifle demand across all vehicle age sectors. Reserves need to be keenly priced on poorer condition vehicles if they are to sell first time.”

Pearson also said the outlook for pricing remains stable as supply and demand are currently well balanced.

“We’re seeing some volume lift from the impact of the plate change, but the cleanest used cars are being remarketed quickly. We’re working closely with our customers to support accurate pricing for stock entered in our daily sales programme as well as exploring opportunities to improve condition and support vehicles selling the first time they are offered.”

Cap HPI also continues to report ongoing stability across the used car market. Its figures for March showed the market remained steady, with average value movements at three years, 60,000 miles recording a decrease of just 0.1%, or equivalent to a c.£70 reduction.

That’s a major turnaround from the average 10.5% drop seen over the October-December 2023 period – which was the result of a ‘perfect storm’ of heavier supply, lower demand, high used car prices and lower-than-market values for fleet companies’ residual values on stock returning to the market.

Strong start to Q2 used car market following record Q1, reports Liquid Fleet

Martin Potter, Liquid Fleet’s commercial director

Latest figures from Liquid Fleet also underscore the current stability in the used car market.

The fleet procurement and management company reported record used car sales in the first quarter of 2024 and a strong start to the second quarter.

Liquid Fleet experienced a buoyant used market from the start of 2024, where normally it takes about two weeks for the trade to return to buying stock – and sold almost 450 units through its remarketing network.

April looks to have continued in the same vein with retailers reporting a healthy Easter weekend and Liquid Fleet forecasting a strong Q2 used market. That’s across all its wholesale remarketing channels – including direct, franchised dealer and car supermarkets.

Retail sales have also produced some strong results as Liquid Fleet aims to mitigate any potential losses from Q4 2023, which saw residual values fall by 12%.

“This change to the market has come at a very important time as new prices have been increasing and interest rates high. We needed residual values to stabilise in Q1 to inject confidence back into the market and to enable us to remain competitive when procuring and leasing cars into the market,” said Martin Potter, Liquid Fleet’s commercial director.

Liquid Fleet runs 2,500 vehicles, and its cars are typically petrol and petrol hybrid and replaced every 13 months and around 22,000 miles. It also runs a few diesels, some vans on 48-month/48,000-mile replacement cycles and a handful of six- and eight-month contract cars.

Its high used car conversion rates have seen cars selling in just 15 days or less with residual values exceeding CAP Clean figures when adjusted for damage.