Used car values break £10k barrier, BCA reports
24 September 2021
Author: Sean Keywood
The average price of used cars sold at auction went above £10,000 for the first time ever in August, according to BCA.
The auction company reported an average price of £10,153, which was a £640 increase month-on-month, and a £2,107 increase year-on-year.
BCA said there had been a further acceleration of the high demand already seen for used cars this year, and that seasonal market swings which traditionally see August as a down-month for sales had all but disappeared.
BCA UK COO Stuart Pearson said: "The current dynamics seen in the used vehicle sector are very much amplified by challenges around new car supply, and we've seen high levels of buying activity from the franchised dealer sector at a time when traditionally they would have been focussed on the preparing for the new plate change.
"Buyers are also diversifying to make the most of the current retail activity levels and their purchasing is rippling through the whole value chain. Whilst older stock has been fairly stable for a number of months, this sector is also now starting to shift upwards when normally the market would be easing back on the run towards Christmas.
"We've reported record price levels for three consecutive months, and looking at the value progression across the used car sector during August and into the first few weeks of September, average values are likely to shift to another new level that probably once didn't seem possible. In all likelihood there will be no letting up for some months to come."