Used car values at BCA remained stable in February as a result of increasing buyer engagement and strong competition for vehicles.
Used car values averaged £7,564 at BCA in February, down by £33 (0.4%) compared to January. However, used car values are still 9.4% ahead of the December 2023 low point.
Buyer appetite for stock improved sold volume while sales conversion improved by several percentage points and guide price performance also improved compared to January.
Stuart Pearson, BCA COO said: “A number of larger retail outlets have continued to buy in significant volumes as they seek to replenish some particularly low inventory levels in recent months.
“The size of the BCA’s buyer base and strength of demand have all helped to contribute towards a stable used car marketplace, with vendor supply and buyer demand well-balanced across most sectors.
“Once we’ve navigated the forthcoming Easter period and some potential pressure on prices, we should remind ourselves that new registrations over the past four years have been significantly lower than traditionally seen and that potentially means increased demand for the most desirable used cars.”
Older higher mileage stock was under pressure but the 2 to 4 year old segment thrived. There was widespread activity, from larger car supermarkets and franchise dealers, and new buyers. As a result, February saw one of the largest monthly buyer numbers.
Pearson added: “With generally improving economic conditions on the horizon, there’s every expectation that retail demand for used vehicles will remain positive. Perhaps we should also start to be a little more optimistic about the potential for the used car market in the year ahead?”