Used car prices rise to over £8,000 as demand for second-hand models continues to grow09/15/2020
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Used car sales volumes are up 3.9 percent over the course of the month as prospective buyers search for second-hand vehicles amid the pandemic. The BCA revealed they sold a record number of cars online in August with around 6,000 cars being sold each day on average.
BCA COO UK Stuart Pearson said there was “no let-up” across August as dealers geared up for the September number plate changes.
He revealed the used car marketplace was operating “efficiently” with “demand for stock” among prospective buyers.
Mr Pearson revealed dealers were still selling as many models as they may have done before the coronavirus pandemic took hold as the market continues to enjoy healthy growth.
Mr Pearson said: “The stable market conditions continued in August, and there was no let-up in activity as we approached the plate change on 1st September.”
“BCA has seen improving levels of supply reaching the marketplace throughout the period of the pandemic with well-matched demand for stock from our buyer base.
“The marketplace is operating very efficiently and this is good news for all professional operators in the used vehicle sector.”
“Anecdotally, many dealers are telling us that their stock churn has improved significantly, with many holding lower volumes of stock but still selling as many vehicles as they might have expected pre-Covid19.”
However, analysis from market analysts at Indicata has revealed that the used car mart saw a sales decline in August.
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They reported a 3.3 percent year-on-year drop with sales volumes down 50 percent compared to 12 months ago.
Car sales across the board are down year-on-year as consumer confidence took a knock amid the pandemic.
New car sales are still down by 5.8 percent compared to data collected in August 2019 as many continue to struggle with financial difficulties amid the pandemic.
However, Indicata sales director Jon Mitchell was cautious about the future, warning September could be a “challenging month”.
He said: “The UK used car market saw an interesting blend of high prices, improving stock levels and a fall in demand year-on-year.
“Based on these trends, September could be more of a challenging used car month for dealers.”
Higher used car costs may be usually viewed as a bad thing for buyers but this is viewed positively in the marketplace.
Higher values mean there is higher demand for the models among consumers who are willing to buy.
Just months ago, experts at AutoTrader revealed used car prices had remained mostly stable throughout the lockdown which had helped the industry.
They said this had put the market simply “on hold” during the lockdown with dealers not cutting costs as much as would have been expected.
The used car market fared much better than the new car market which saw dramatic sales declines throughout the Spring and Summer.
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