July 25, 2024
News

Despite UK bank holidays, stability remains in the used car market: BCA

In spite of two bank holidays in May, the UK used car market remained steady with a balance between supply and demand, as reported by BCA. The average vehicle value experienced a slight decrease of £132 to £7,376 compared to April. Throughout the year, the average value has seen a decrease of just over £200 from £7,597, indicating a consistent stability.

Monthly sold volumes reached the second highest point of the year, and performance against price guide expectations increased by 1.1 percentage points from April. Sale conversion rates remained strong, supported by a notably higher number of active buyers compared to the same period last year. Each week saw over 5,000 different buyers making purchases, leading to the introduction of new sales events and an expanded weekend sales itinerary.

Source: BCA Valuations

Feedback from BCA’s buyers indicates a healthy level of activity in the used retail sector, with strong competition for well-presented vehicles, partly attributed to the decrease in new car registrations during the pandemic. The post-Easter period has demonstrated a robust performance in the used car market, with optimistic expectations extending into the summer holiday season.

Stuart Pearson, BCA COO, commented: “Following some initial pricing fluctuations at the beginning of the month, the sentiment among both our buyers and sellers has generally been positive, largely driven by a very steady market with minimal overall movement.”

“While we have observed an increase in volume, the demand has surpassed it, and clean and well-presented stock always garners competitive bidding. Despite the negative press surrounding EVs, many have now reached a price point that makes them highly attractive, leading to a good level of demand for various models. Overall, pricing stability tends to instill confidence, and we have witnessed a further uptick in the market in the early days of June.”

Pearson further added, “Considering the flurry of often contradictory economic messages and the upcoming General Election, coupled with being in a traditionally quieter period of the year for used car sales, our buyer customers indicate that retail activity remains relatively strong. All signs suggest that these trends will persist in the coming months, with many dealers eager to expand their used stock if they can procure it.”


**FAQ Section:**

**Q:** How has the UK used car market performed in May?

**A:** The UK used car market remained stable in May, with a balanced supply and demand.

**Q:** What was the average vehicle value in May compared to April?

**A:** The average vehicle value saw a slight decrease of £132 to £7,376 compared to April.

**Q:** What trends were observed in the post-Easter period in the used car market?

**A:** The post-Easter period showed strong performance in the used car market, with positive expectations extending into the summer holiday period.

**Conclusion:**

Despite external uncertainties and seasonal variations, the UK used car market has demonstrated resilience and stability. Buyer demand has remained strong, driven by competitive pricing and a diverse range of well-presented vehicles. As we move forward, the market shows promising signs of continued growth and opportunity for dealers to capitalize on the momentum.

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