Car prices stabilize in June

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【Summary】Used car prices have remained consistent for the third consecutive month, with the shortage of three to four-year-old vehicles being a key factor. Car supermarkets are competing strongly for the best models, while demand has increased for late-plate, low mileage vehicles. However, the gap between the grades of vehicle quality has widened, with prices on poorer quality stock requiring close attention. The pricing expectations for older, more damaged stock also need careful consideration.

FutureCar Staff Aug 14, 2023 10:09 AM PT

Average used car values have remained consistent for the third consecutive month, as reported by BCA. The average prices were recorded at £8,255, with the overall price heavily influenced by the mix of vehicles available in the market.

It comes as no surprise that the shortage of genuine three to four-year-old products continues to be a significant factor. Consequently, car supermarkets are fiercely competing for the best models.

Following the trend observed in recent weeks, there has been a strengthening demand for high-quality stock. This has led to increased competition for vehicles in Grade 1 and 2 condition, especially for late-plate, low mileage examples that are currently in short supply. On the other hand, the values of poorer quality stock require careful attention, as the gap between different grades has widened further.

BCA UK COO Stuart Pearson commented on the situation, stating, "Given that economic conditions have shown little improvement over recent months, with inflation remaining stubbornly high despite rising interest rates, we've seen strong attendance and competitive bidding across our online sales during the month. There is definitely a widening gap between the price performance of the best and worst condition vehicles, and we're working closely with sellers to ensure that pricing expectations are realistic, as this has shifted fairly quickly during the month."

Pearson further added, "The shortage of vehicles in the three to four-year sector is fueling some really strong activity. However, the pricing expectations on some of the older, more damaged stock require very close attention to ensure that first-time sales are achieved. The challenge for any remarketer is to aim to sell every vehicle first time for the optimum value, and staying up to date with the latest pricing information and using all of the available reference points remains crucial to success."