Used prices set to keep soaring

Average monthly used car values at BCA surpassed £10,000 for the first time ever.

Historically, used car activity has been slower in August due to the peak summer holiday season and the impending plate change on 1 September, however the element of seasonal market swings has all but disappeared in 2021.

Stuart Pearson COO BCA UK said: “The current dynamics seen in the used vehicle sector are very much amplified by challenges around new car supply, and we’ve seen high levels of buying activity from the franchised dealer sector at a time when traditionally they would have been focussed on the preparing for the new plate change.

“Buyers are also diversifying to make the most of the current retail activity levels and their purchasing is rippling through the whole value chain. Whilst older stock has been fairly stable for a number of months, this sector is also now starting to shift upwards when normally the market would be easing back on the run towards Christmas.”

He concluded: “We’ve reported record price levels for three consecutive months, and looking at the value progression across the used car sector during August and into the first few weeks of September, average values are likely to shift to another new level that probably once didn’t seem possible. In all likelihood there will be no letting up for some months to come.”