Used car demand remains robust

Used car demand remained steady during December, although online remarketer BCA reported a definite lift in interest through the festive season as BCA.

It found that values averaged £8,265 last month, down by £212 or 2.5% compared to November. Meanwhile, there continued to be particular pressure in the used EV market with some models seeing significant pricing corrections throughout the month.

BCA UK COO Stuart Pearson said: “BCA reported steady used car values and good levels of buyer interaction in December despite the many pressures that remain across the wider UK economy. The budget used car sector remains extremely active as motorists look for the best possible value when buying a replacement vehicle and this continues to impact wider wholesale average values. More used EVs are returning to the market than ever before, and whilst there is definitely some volatility in their pricing, the use of real-time pricing intelligence remains vital to keep stock turning.”

He added: “The New Year has started on a brighter note for the wholesale market, with strong levels of demand from professional buyers and anecdotal reports of improving retail activity on used vehicles.

“Meanwhile, recent economic reports seem slightly more positive with talk of inflation falling in 2023 and the SMMT reporting the fifth consecutive month of growth in the UK new car market in December.

“Whilst new cars are becoming more readily available and there is also likely to be further volatility in the EV sector, most dealers have rigorously managed their closing year end stock position and there is every expectation that used car values will remain resilient for the next few months.”