Used cars at auction is ‘buyers market’ says BCA

The wholesale used car sector turned into a buyer's market after the March plate change with big volumes of cars at auction

Auction house BCA said that while average prices continue to rise, many cars were not selling first time

Simon Henstock, BCA COO UK Remarketing said: "While BCA's data shows average values are rising, much of this is driven by the high quality of stock we offer.

"We are seeing high volumes of stock reaching wholesale channels which means it is a buyer's market in the short term."

"Conversion rates are under pressure as a result, and it is critical to price vehicles correctly at the point of sale.

"The old adage of Best bid, first time offered' is as true today as it ever has been and our data confirms that.

" Sellers find that it becomes increasingly difficult to sell on a second or third entry for sale if they do not adjust their reserve values to meet market expectations.  It increases the time to sale and potentially results in higher holding costs for sellers as they chase the market down."

The headline average value rose above £9,000 for the first time on record, having climbed steadily during 2017.

Average values for fleet and lease stock also reached a new high point, with a similar record-breaking price performance achieved for dealer part-exchange vehicles.  Values for nearly-new vehicle values fell by just under 1%.

Source: www.bing.com