Used car market shows signs of settling

The used car market has made a steady but unspectacular start to the New Year, according to BCA’s latest data.

External economic pressures and the cost-of-living squeeze are affecting consumer demand and the strong performance typically seen in the early weeks of the New Year has simply not materialised in 2022.

Used car values averaged £10,025 in February 2022, down from the £10,120 average value recorded during January.

BCA UK COO Stuart Pearson said: “The market has experienced a range of conflicting economic signals in recent weeks, with the good news as Covid-19 restrictions were lifted being cancelled out by rising interest rates, a cost-of-living squeeze, energy and fuel price increases and now the uncertainty caused by the tragic events unfolding in Ukraine.

“Unsurprisingly, we haven’t seen the usual seasonal market bounce during the first quarter and while levels of demand remain steady these macro-economic issues are definitely influencing consumer behaviour and retail demand.

“However, new car supply still remains challenging for a number of brands and whilst the order pipeline remains healthy, consumers continue to face lengthy waiting times for many new cars, so rebalancing shouldn’t be too difficult to achieve.”