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The wholesale used car market turned in a strong performance in January year on year with values up across the board. BCA saw record dealer part-exchange values while fleet and lease vehicles reached the second highest average value ever recorded. Average values across all cars stood at £9,840 in January, which represented an increase of £364 year-on-year, equivalent to a 3.7% improvement across the board, despite both average age and mileage rising. Values were, however, slightly down from £10,015 in December 2019.
Fleet and lease values averaged £12,331 in January, slightly down on December’s figure, but up by £878 (7.1%) year-on-year, despite both average age and mileage continuing to rise. Demand for fleet and lease stock at BCA has seen values rise consistently since September of last year, with the last five months representing the five highest monthly values recorded.
Dealer part-exchange values at BCA rose to record levels for the second month running during January, increasing by £76 (2.5%) over the month to reach £5,397. Average values for part-exchange vehicles were up by £281 (5.5%) compared to the same month last year, with stock showing a slightly lower profile of age and mileage.
Values for nearly-new vehicles at BCA averaged £24,029 in January 2020, with year-on-year values up by £1,044 (4.5%). The January figure is down 4% from £25,021 in December. Model mix has a significant effect in this sector, with brand specific winners and losers.
BCA is seeing a surge in digital business. Digital sales at BCA increased by 23% across the board compared to January last year, as average used car values rose. More than 50% of BCA’s professional buyers now use its BCA Buyer app, with frequent user numbers continuing to rise.
Stuart Pearson BCA COO UK remarketing said: “Online trading played a significant role during January with sold volumes rising by a significant 23% compared to January last year. January was a strong month across BCA’s network with record volumes sold and strong buyer engagement across the network for both physical and digital sales.
“Dealer customers are reporting positive levels of retail activity and this is driving demand in the wholesale sector. Online trading also plays a significant role for professional LCV buyers.”
Diesel stays steady
Demand for diesel vehicles remains strong in the wholesale market, with values having climbed steadily over the past year.
Values for all diesel vehicles averaged £9,003 across the board in February 2020, a year-on-year improvement of £246 (2.8%) despite average age rising to 77 months (+ 6.9%) and mileage increasing to 70,246 (+ 2.7%).
Values also increased from December 2019, which saw an average figure of £8,968.
Pearson said: “For many used car buyers diesel will remain the preferred fuel type as it offers great economy and lower running costs. Professional buyers are bidding strongly across the range of vehicles on offer with age, condition, specification and mileage continuing to be the overriding factors that determine price.”
Demand for diesel is expected to continue in segments such as SUV and 4×4, and, as clean air zones are announced in cities around the UK, BCA predicts that demand will rise for exempt vehicles with the latest clean diesel technology.
LCVs bounce back
LCV values at BCA slipped slightly in December with an average of £7,293, down £80 on the November figure. The slight decline was caused by a changing model mix driven by an increased percentage of dealer part-exchange vehicles sold.
However, the market bounced back in January, as values at BCA hit an all-time high at £7,636, an increase of £343 (4.7%). This is up by £307 (4.2%) year-on-year.
Fleet and lease averaged £8,537, an increase of £199 (2.3%) over December’s figure and the highest monthly value ever recorded for corporate LCV stock at BCA. Year-on-year values were up by £324 (3.9%) with average age and mileage both rising.
Part-exchange, a category that saw a 4.1% decline in December, saw values average £4,788, an increase of £222 (4.9%) on December’s figure of £4,566 and a new record value for dealer-sourced LCVs at BCA. Year-on-year, values improved by £34, with a similar age and mileage recorded.
The only category to see a decline was nearly-new LCVs, where values averaged £17,357, down slightly on December’s figure (£17,417) but up by £149, year-on-year.
BCA Buyer app launches digital Sale Day catalogue
Dene Jones – Chief Marketing and Data Officer | BCA
The BCA Buyer app is proving a highly successful addition to BCA’s suite of remarketing tools, supporting buyers whether attending sales physically or joining remotely.
The app generates insight that helps BCA meet the needs of its buyer customers, creating additional buying power by ensuring that buyers never miss the vehicles that they are interested in.
More than 50% of BCA’s active buyer base has been using the app since it launched a year ago.
BCA released a major update to the app in February with the introduction of a new digital Sale Day catalogue.
This feature delivers the same content as the daily printed catalogues available at BCA centres but via a seamless online experience with even more features.
The catalogue includes a breakdown of each sale by vendor or section, with details of which hall the sale is in, the current lot number and the number of vehicles entered.
App users can see the detail of each individual vehicle including description, images, valuation data, grading and BCA Assured reports.
It also enables users to have a quick view of a selected BCA centre’s sale programme.
This update to the BCA Buyer app means customers now have everything they need for every sale day, no matter how large the catalogue is, or which hall the lots are being offered in.