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Used car values increase for first time in 2022, BCA reports
Date: 21 July 2022 | Author: Sean Keywood
Used car values rose to an average of £9,196 in June, in the first monthly increase seen this year, according to auction firm BCA.
Compared with May, values were up by £745, or 8.8%, with performance against guide values also improving, while volumes were broadly static. However, June's average was still down by £47 year-on-year.
According to BCA, the high cost of fuel and news of improvements across the UK's charging infrastructure has generated increased levels of buyer interest in EVs and hybrid vehicles, with values having remained firm in 2022 and typically well ahead of last year.
BCA UK COO Stuart Pearson said: "June saw particularly strong demand for vehicles less than 3 years old along with an uptick for the sports and prestige models that you typically see at this time of year. BCA's Forecourt Ready sales programme was also incredibly popular, emphasising that whilst retail conditions remain challenging, dealers are most interested in stock that is well prepared and can be sold quickly.
"The lack of registrations during the early part of the pandemic is definitely playing into the imbalance in the ex-lease and contract hire sector and this, combined with new car supply pressures, has created a sweet spot where even in the current climate, demand is definitely ahead of supply.
"With ongoing constraints around new vehicle supply, prices should remain relatively stable but we are seeing the price differential widen between the best condition vehicles and lower grade examples requiring refurbishment. For volume sellers, it remains as important as ever to adhere to the remarketing basics and make use of the most recent pricing intelligence when appraising and valuing stock for sale."
