The used car market is looking increasingly fragile, with a downward trend for used values comments Tony Gannon on BCA’s Pulse report.Used car data for April showed average used car values moved little in the month.
Values averaged L5406 – March average L5400 – on stock of a similar age and mileage profile.
However, performance against guide values slipped: on average CAP valued the same basket of stock L120 higher.
In reality, prices on well-presented and nicely specified retail-quality cars were maintained.
But with little else selling, price alone is not telling the full story.
Conversions fell noticeably.There is now a lot of unsold stock in the market. This is continuing to depreciate. And will inevitably be sold at what the market will realistically pay – that’s when we will see the average selling price reflect the true market condition.
Post-Easter confidence in the used vehicle market remains fragile. Supply has increased when demand is falling. And trading conditions in May have, if anything, worsened.
Anecdotal feedback from our dealer customers suggests that retail buyers are just not around in any great numbers, with many struggling to raise finance for any potential purchase.
BCA Pulse used car data
- Average values for volume fleet product fell by L82 against March to L4768
- Premium fleet product rose in value compared to March by L162 to L10,257
- Average part-exchange values fell by L24 (1%) to L2346, to post a third consecutive monthly fall
- Average values for volume part-exchange cars fell by L77 compared to March
- Nearly-new values were L119 down on March at L14,858, equivalent to a fall of three-quarters of one percent
