Used car values have reached record levels for the second consecutive month, despite fears that average prices would begin to fall.
According to BCA’s latest Pulse report, the average value of a used car sold in August rose by £295 to £8,001. This is the second month in a row that prices have reached record highs, with the values in August 2014 standing at £964 – or 13.6 per cent – higher than 12 months before.
It is important that motor trade companies keep abreast of market developments such as these because they could have an influence on their motor trade insurance policy. As the average value of vehicles in the UK continues to rise, it is important that businesses have the right level of cover for the cars stored at their premises – continually reviewing the policy and working with expert brokers will help ensure a company has more than adequate protection for its specific needs.
There had been predictions circulating within the industry that the booming used car market would begin to struggle in coming months. However, BCA’s latest figures show that the demand for high quality used vehicles is still there and this is keeping prices high.
Simon Henstock, BCA’s UK operations director, offered these comments on the findings: “With the plate change now in full swing, we expect volumes to rise from late-September onwards and this traditionally exerts some pressure on average values and conversion rates.
"Currently, demand remains very good and there is plenty of interest for the best-quality cars – which continue to achieve strong prices. Poorly presented and damaged vehicles might begin to struggle, however, and if the market conditions tighten then these vehicles will need to be competitively priced to stimulate interest.”