Car prices stabilize in June

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【Summary】Used car prices have remained steady for the third consecutive month, with a shortage of three to four-year-old vehicles driving up competition and prices for the best quality stock. However, there is a widening gap in prices between vehicles in good condition and those in poorer condition. Car supermarkets are especially competing for the best models.

FutureCar Staff Aug 17, 2023 12:34 AM PT

The average used car values have remained consistent for the third consecutive month, according to BCA. The reported average prices are £8,255, with the overall price heavily influenced by the mix of vehicles. The shortage of genuine three to four-year-old products continues to be a significant factor, leading to strong competition among car supermarkets for the best models.

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

BCA UK COO Stuart Pearson commented on the market conditions, stating that despite little improvement in economic conditions and stubbornly high inflation, there has been strong attendance and competitive bidding in online sales. The gap between the price performance of the best and worst condition vehicles has widened, and sellers are being advised to have realistic pricing expectations.

Pearson also highlighted the strong activity in the three to four-year sector due to the shortage of vehicles. However, he emphasized the need for close attention to pricing expectations on older and more damaged stock to ensure successful first-time sales. The challenge for remarketers is to sell every vehicle for the optimum value, and staying up to date with pricing information and using available reference points is crucial for success.