Car prices stabilize

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【Summary】Used car prices in the UK have plateaued for the third consecutive month, with average prices remaining at £8,255. The shortage of three to four-year-old vehicles continues to drive competition among car supermarkets, while demand for higher quality stock has increased. However, values for poorer quality vehicles have widened further. Economic conditions have not improved, but online sales have seen strong attendance and competitive bidding.

FutureCar Staff Aug 14, 2023 12:05 AM PT

The 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 being heavily influenced by the mix of vehicles in the market.

A key factor contributing to this consistency is the shortage of genuine three to four-year-old products. As a result, car supermarkets are competing fiercely to secure the best models in this category.

In recent weeks, there has been an increasing demand for high-quality stock. This has led to intensified competition for vehicles in Grade 1 and 2 condition, especially for late-plate, low mileage examples. These vehicles are currently in short supply. On the other hand, the values of poorer quality stock require close attention, as the gap between the different 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, strong attendance and competitive bidding were observed during the online sales in the past month. Pearson also highlighted the widening gap between the price performance of vehicles in the best and worst condition. BCA is working closely with sellers to ensure realistic pricing expectations, as these have shifted quickly in recent times.

Pearson also mentioned the strong activity fueled by the shortage of vehicles in the three to four-year sector. However, he emphasized the need for close attention to the pricing expectations of older and more damaged stock to achieve successful first-time sales. The challenge for any remarketer is to sell every vehicle for the optimum value, and staying up to date with pricing information and utilizing all available reference points is crucial for success.