Used car prices stabilize June

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【Summary】Used car prices in June remained consistent for the third consecutive month, with an average value of £8,255. The shortage of three to four-year-old vehicles is a major factor, leading to increased competition among car supermarkets for the best models. Demand is strongest for high-quality stock, while the gap between grades of poorer quality vehicles has widened. Despite economic conditions and rising interest rates, online sales have seen strong attendance and competitive bidding.

FutureCar Staff Aug 14, 2023 5:12 PM 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, and the overall price was heavily influenced by the mix of vehicles.

It is not surprising that the shortage of genuine three to four-year-old products continues to be a significant factor. As a result, car supermarkets are fiercely competing for the best models.

Continuing the trend observed in recent weeks, there has been an increase in demand for high-quality stock. Competition for vehicles in Grade 1 and 2 condition, especially for late-plate, low mileage examples, has intensified due to their scarcity. On the other hand, the gap between the grades has widened further for poorer quality stock, requiring careful attention.

Stuart Pearson, BCA UK COO, commented on the current market conditions. Despite little improvement in economic conditions and persistently high inflation, there has been strong attendance and competitive bidding in BCA's online sales. Pearson emphasized the widening gap between the price performance of the best and worst condition vehicles, and the importance of setting realistic pricing expectations in collaboration with sellers.

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