British Car Auctions predicts strong used car values in 2014

As average used car values have surged to record levels during 2013, leading vehicle remarketing company, British Car Auctions (BCA) suggests next year could bring more of the same in the used car market as the availability of retail quality used cars is likely to remain limited.

Average used car values in 2013 have seen a substantial year-on-year rise over 2012 according to BCA’s most recent Pulse Report, underlining the on-going value evolution in the used car market. Demand for first time to market fleet and lease stock has seen values rise by around 15% compared to a year ago. Values have also risen sharply for dealer part-exchange vehicles, as professional buyers have focused on older higher mileage cars, with year-on-year variances regularly exceeding 20%.

Simon Henstock, BCA’s UK Operations Director commented: “We have seen an upturn in the supply of dealer part-exchanges at BCA in 2013, reflecting reports that retail sales have been strong. However, supplies of fleet & lease vehicles remain constrained, a consequence of the reduced new car sales to the business sector following the onset of the financial crisis in 2008.”

“While new car volumes have recovered well in 2013, it will be some time before we see those volumes reach the used car sector. As the chart shows, the availability of 3-5 year old cars (blue column) will continue to be depressed at least until 2015, when compared to the volumes available before the recession took hold.”

Source: BCA Used Car Market Report 2013

Top