Sold volumes at BCA increased in August while values slipped back, but the market remains strong on the whole.

Values were down 5.7% after sold volumes hit their highest level since March 2022

Values averaged £8,954 across the board at BCA in August, down 5.7% from £9,464 the previous month, with performance against guide values down marginally on July at 97.3%.

At the same time, sold volumes hit their highest level since March 2022, despite August traditionally being one of the quieter months for used car sales. And while it was the better-condition vehicles that got the most interest, buyers have also started looking at lower-grade and higher-mileage vehicles.

BCA UK COO Stuart Pearson commented “Given the ongoing concerns around the cost of living, inflation and interest rates, political uncertainty and the ongoing war in the Ukraine, trends in the used car market were relatively positive in August.

“Sold volumes increased at BCA in August and while average values came under some pressure, this was largely a result of the change in model mix that is typical at this time of year. Seasonality has made a return in 2022 and trading activity across the wider used car market has settled down to more familiar patterns as the constraints imposed by the pandemic have receded.”

Pearson added that the ongoing shortage of ex-lease, rental and OEM stock is likely to remain a challenge for the wholesale used vehicle sector for some time to come.

“But even here, the SMMT’s August report noted the first upswing in new car volumes for many months – a modest 1.2% rise – so perhaps we are starting to see the very earliest green shoots of recovery in the new vehicle sector?”

The National Association of Motor Auctions (NAMA) has also noted that its members are reporting a stable market.

Its figures actually show the wholesale market value is up 0.1% in September in comparison to August.

“Demand has fallen slightly which may be attributed to external pressures influencing consumer buying trends, but this falls in line with expectation. As a whole, however, there are enough buyers out there interested in buying stock,” said spokesman Paul Hill.

While the retail market has reported a fall in demand from consumers over the last four weeks, in comparison to the previous four, the ongoing supply issues are keeping demand even.

Whilst the plate change month of September often sees an influx of stock, NAMA members have stated that this has not yet hit their forecourts and is not expecting to provide significant volumes into the market. However, particularly good results are being recorded in used cars between the ages of 3-5, experiencing high demand from consumers.

Demand for diesel is still reducing, whilst petrol and BEV remain as the market’s focal point.