BCA predicts used car sector stability after values declined 19% in two months

BCA said that the wholesale used car market showed signs of moving towards a “more stable” footing after average sold values declined by 19% in two months.

The average value of a car sold at the remarketing giant’s auctions dipped to £9,571 in November, from a September peak of £11,817, as a better balance of supply and demand “ironed out some of value spikes seen in recent months”, BCA said.

Year-on-year, average monthly values are up £1,855, equivalent to a 19.8% increase.

Stuart Pearson, BCA’s chief operating officer, said: “November continued the move towards a more stable and familiar seasonal trading pattern across the used sector. 

“Values at BCA remain robust with very little overall movement during the month, and whilst overall buyer engagement levels have remained very positive, it is clear that many customers are taking stock and making preparations for what many expect to be a busy New Year.”

In the latest digital edition of AM Magazine Cap HPI head of valuations, Derren Martin, Cox Automotive director of insight Phillip Nothard and Auto Trader commercial director Ian Plummer gave their predictions for the year ahead in a 2022 Outlook feature.

All said that limited new vehicle supplies would mean strong used car values in the first half of the year in the feature which also drew of car retailer responses to an exclusive AM survey run in partnership with JudgeService.

Pearson added: “We all remain hopeful that any surge in COVID-19 doesn’t create too many challenges for the industry. However, with the ongoing concerns around new car supply, we will almost certainly see the market kick-start in the New Year and therefore average values should remain robust for some months to come. 

“To help our customers get ahead, BCA has announced an extensive programme of online auctions and Buy Now sales over the festive period to help our customers prepare for the New Year.”

BCA has confirmed that it will be staging its biggest ever festive sales programme with over 15,000 cars and LCVs being offered via online auction between Christmas and the New Year.

Sales will run on Friday 24th, Monday 27th, Tuesday 28th, Wednesday 29th, Thursday 30th and Friday 31st December, with the normal sales programme resuming from Sunday 2nd January.

BCA trade buyers can bid and buy safely and remotely via the BCA Buyer app or BCA Online.