Car prices stabilize in June

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【Summary】Used car prices have remained steady for the third consecutive month. The shortage of three to four-year-old vehicles is a key factor driving up prices, especially for high-quality models. Demand for late-plate, low mileage cars is strong, while prices for poorer quality stock have widened the gap. Despite economic conditions, online auctions have seen competitive bidding. Sellers must adjust pricing expectations to achieve optimal value.

FutureCar Staff Aug 15, 2023 10:22 AM PT

BCA has reported that average used car values have remained consistent for the third consecutive month. The average price was recorded at £8,255, with the overall price being heavily influenced by the mix of vehicles.

One key factor contributing to this consistency is the shortage of genuine three to four-year-old products, which continues to be a challenge. As a result, car supermarkets are fiercely competing for the best models.

In recent weeks, there has been a growing demand for high-quality stock, particularly vehicles in Grade 1 and 2 condition. Late-plate, low mileage examples are especially sought after, but they remain in short supply. On the other hand, the values of poorer quality stock require close attention, as the gap between the grades has widened further.

BCA UK COO Stuart Pearson commented on the market conditions, stating that despite little improvement in economic conditions and high inflation rates, online sales have seen strong attendance and competitive bidding. Pearson also highlighted the widening gap between the price performance of the best and worst condition vehicles, emphasizing the need for realistic pricing expectations.

Pearson further addressed the shortage of vehicles in the three to four-year sector, stating that it has fueled strong activity. However, he emphasized the importance of closely monitoring pricing expectations for older and more damaged stock to ensure successful first-time sales. Pearson concluded by emphasizing the importance of staying up to date with the latest pricing information and utilizing all available reference points for success in the market.