We use cookies to ensure that we give you the best experience on our website. If you continue without changing your settings, we will assume that you are happy to receive all cookies on the Business Car website. However, if you would like to, you can change your cookies at any time
The start point for the best source of fleet information |
The average price of used cars sold at auction rose slightly in October, despite significant pressure on the market, according to BCA.
The auction company said that its average used car value last month was £7,397, up from £7,262 in September, which it attributed to an improving mix of product.
BCA said this followed four months of decline, and also came alongside price guides declared the largest monthly downward move in more than ten years, with a 4.2% drop across the board decline for the month.
BCA COO Stuart Pearson said: "Our buyer customers tell us that the retail used car market continues to be very tough. Movements in values have further been exacerbated by improving new car supply, along with the re-emergence of new car discounting and manufacturer support that has been virtually extinct since the start of the pandemic.
"It therefore shouldn't be surprising that we're experiencing some realignment of used values following the inflated prices that have existed for the last three years.
"Fortunately, the last few years have created greater rigour around used vehicle stocking which means that even with the value movements that the market is experiencing, engagement with our buyer base remains positive and sellers and buyers are finding a way to transact, albeit there is definitely some pain being taken."
Pearson said that as a result of pricing volatility, buyers continued to be extremely selective and condition sensitive, and many were applying further uncertainty discounting to insulate themselves from expected falls in values between now and the end of the year.
He continued: The likelihood is that we're in for another challenging month in November, but there is demand as long as pricing is realistic and in line with market sentiment.
"The old adage of the first bid often being the best bid is definitely playing through in the data we see.
"These are undoubtedly economically trying times and navigating the next few months will require some caution as many are expecting values to find a new level before the end of the year. Even so, it is worth considering that the period that follows economic uncertainty can often be one of significant opportunity."
BusinessCar magazine ©2019
Business Car Magazine © 2020 | Business Car is part of NS Media Group.
