BCA says used buyer numbers at record high

Unique used car buyer numbers at BCA rose above 10,500 for the first time on record last month, as demand remained significant but price sensitive, with BCA noting greater selectivity and generally lower volume requirements from buyers.

Average used car values remained stable at £7,550, down by just £18 compared to June’s figure. Sold volumes rose by 8.5% over the month to nearly 85,000 units, the second highest monthly volume recorded this year.

BCA reported that those sellers who stayed close to the market and valued their vehicles in line with current expectations continued to enjoy higher sale conversion rates and above average churn of stock in July.

This was particularly the case at the older end of the market where vehicles over eight years old appeared to be trading some way behind market guides.

BCA said competition is strong for clean, retail-ready vehicles, particularly prime 3 -5-year-old stock, which remains in relatively limited supply, and EVs which continue to outperform the wider market in terms of desirability and price performance, particularly as the Iran conflict rumbles on and fuel prices remain high.

However the company cautioned that poorer condition stock has to be sensibly priced to attract attention from buyers, who remain wary of vehicles requiring mechanical or cosmetic refurbishment as the ongoing shortage of repair bay space raises concerns over vehicle preparation time.

BCA COO Stuart Pearson commented: “The used car sector has continued to tick over steadily in July, despite the ongoing heatwave across much of the country and the start of the summer holiday season, factors that will have affected retail footfall significantly in recent weeks.

“Larger used car retailers and dealer groups are anecdotally reporting reasonable levels of retail demand, while the message from small to medium retailers is generally more challenging and difficult, particularly for those selling higher mileage, older stock.”

He added “Understandably, a high percentage of buyers are reporting that they are more cautious than earlier in the year, focusing their attention on ‘value for money’ vehicles that can be retailed with an attractive sticker price. We continue to work closely with our vendor customers to ensure they have the valuation insight they need to price their stock appropriately and the pre-sale services that mean their vehicles can be prepared, presented and sold as soon as possible.”