Used car values rise in January despite third lockdown, reports BCA
Used car values rose in January, despite the UK entering its third lockdown, showing a solid start to 2021.
New BCA figures show average used car values improved by 1.9% (£154) to £8,464 across its sales programe during January; the third highest monthly average value recorded since the onset of the pandemic.
BCA said it had seen high levels of activity and improving average values across its digital sales activity, with record numbers of buyers joining sales virtually.
Stuart Pearson, COO UK remarketing, commented: “While it hasn’t been the January that most in the industry would have hoped for, performance has been solid across most sectors and BCA has seen record numbers of buyers joining our online sales.”
BCA has reported strong results in the dealer part-exchange and top car sectors; buying trends it had reported on during the first lockdown.
But a key difference this time round is in the sheer volume of buyers who are trading safely and in line with government legislation
“The restrictions imposed by the third lockdown have inevitably impacted retail demand. However, as long as sellers follow the remarketing basics, there is a ready audience of buyers for the widest range of stock,” outlined Pearson
“It’s not the frenzy that we would usually see at this time of year, but supply and demand are well-balanced and there is a level of pragmatism in the market that is keeping the wheels turning.”
However, pre-sale preparation and appropriate refurbishment remain vital to generate additional value as buyers continue to focus on stock that can be turned quickly.
Pearson concluded: “All things considered, the market has been remarkably stable and BCA’s Decision Intelligence team are keeping abreast of the current evolving picture in the wholesale sector. We are working closely with our sellers to ensure their pricing strategies are realistic and in tune with market sentiment.”