BCA reports softening of used car prices
Used car values averaged £8,492 at BCA in November 2022, down by £331 or 3.8% compared to October.
Meanwhile, buyer engagement across BCA’s online sales programme remained robust and first-time conversion rates rose again, averaging over 80% in November.
While average selling price has fallen for two consecutive months, this has been driven by the mix of stock BCA has sold, with a greater proportion of older, lower value vehicles making up the total.
BCA UK COO Stuart Pearson said: “The cost of living crisis, inflation and higher interest rates are likely to be driving the increased activity levels in the budget sector, as motorists needing a used car will be balancing their household budgets with the cost of a replacement vehicle. This change in model mix has naturally impacted the headline average value, however the devil is always in the detail with a number of sectors continuing to perform well, and others starting to be impacted.”
He continued: “With more new model electric vehicles entering the market, used values for EVs are really in the spotlight, and therefore it’s not surprising to see some pricing realignment as the cycle of three-year-old product returns. We’ve also been spoilt with a long run of pricing resilience which can make any shift seem more dramatic, so at a time when household budgets are under as much pressure as anyone will remember, we’re working closer than ever to keep our sellers and buyers aligned to keep the market moving.”
