Used car values stable in third lockdown, reports BCA
The used car sector ended 2020 strongly and performance remains positive in January despite the third lockdown, says BCA.
Its new data shows average used car values at BCA rose by 4.1% during December 2020; up £324 to £8,310 and marking the highest monthly average value recorded since September 2020.
Demand was up due to the easing of lockdown restrictions, with sold volumes rising month-on-month.
BCA’s festive sales programme performed well; online sales volumes more than doubled during the week between Christmas and New Year compared to the previous year as the company staged an extensive programme of online and Bid Now/Buy Now sales over the festive period.
BCA COO UK remarketing Stuart Pearson commented: “The year ended strongly with average used car values rising and strong demand from buyers into the festive period. 2020 was extremely challenging for everybody and, thanks to the close working partnership between our people, our customers and suppliers, we were able to move forward together and finish the year in a significantly better place than might have been expected.”
Pearson added that the market early in January 2021 has been surprisingly resilient considering the third lockdown.
“Prices remain stable across most sectors which suggests supply and demand are well balanced and the used vehicle sector is adapting to the fast moving trading conditions,” he continued. “A recent survey of our professional buyers suggests that the vast majority of dealers are using ‘click and collect’ and ‘home deliveries’ to meet the needs of their retail customers, ensuring that demand is maintained in the wholesale sector.”