Wholesale used car market values increased pre-lockdown

The wholesale used car market continued to grow in February, building on a strong performance in January year on year. The latest BCA Pulse Report showed that the headline used car value rose to £10,002 in February, an increase of £162 (1.6%) compared to January. This is the fourth highest monthly average on record at BCA. Year-on-year, the headline value figure improved by £204 (2.1%). BCA confirmed that those levels of demand continued strongly into early March.

Average year-on-year values increased across all sectors at BCA in February 2020, with dealer part-exchange values rising to the highest point on record, fleet and lease vehicles reaching the third highest average value ever recorded and nearly-new vehicles the second highest figure on record.

Dealer part-exchange values rose to record levels for the third month running during February 2020, increasing by £97 (1.8%) over the month to reach £5,494. Average values for part-exchange vehicles were up by £327 (6.3%) compared to the same month last year, with stock showing a lower age and mileage profile.

Fleet & lease values averaged £12,290, the third highest value ever recorded at BCA and maintaining a run of improved price performance stretching back to September 2019, with the last six months representing the six highest monthly values recorded. Year-on-year values were up by £768 (6.7%) with both average age and mileage continuing to rise. The retained value against original manufacturers retail price averaged 43.7%, down by 0.3 percentage points, year-on-year.

Values for nearly new vehicles at BCA averaged £26,735 in February 2020, the second highest value on record with year-on-year values up by £3,651 (15.8%). Model mix has a significant effect in this sector, with brand specific winners and losers.

Stuart Pearson COO BCA UK remarketing said: “February was a strong month in the remarketing sector and BCA saw competitive bidding across the board from high value prestige stock to older, higher mileage budget vehicles. As in previous years, BCA saw sustained demand in the run-up to the March plate change.

“This continued into early March with competitive bidding from professional buyers driving demand, with excellent conversion rates and typically strong price performance.

“Online trading at BCA continues to play a significant role, with online sold volumes rising above 38% during February, and that percentage continued to rise into March.”

BCA sales went to online only from 25 March as it prioritised the well-being of customers and people in relation to the ongoing COVID-19 situation.

Pearson said: “As the situation surrounding COVID-19 changes by the day, we continue to follow the official Government advice.

“At BCA, we are absolutely committed to do everything we can to help our people, our customers, partners and suppliers during these testing times.

“Following the Government guidelines on working practices as the situation evolves, the BCA leadership team are in constant communication to identify the measures needed to support the health and safety of everyone.

“We continue to offer support and assistance to our customers that supply the Government, Emergency Services, NHS, Food and Medical suppliers during these difficult times.”

Pearson added: “All of BCA’s physical auctions are temporarily suspended, with all vehicle sales now transacted through our online BCA Buy Now platform and we are working on further methods of digital engagement that ensure the health and safety of our staff and customers are not compromised.

“This is in line with many other physical wholesale and retail platforms in the UK. Customers are able to buy and pay for vehicles remotely and we have temporarily suspended the BCA Online buyers’ fee to support our customers. We ask that our customers and suppliers contact their normal relationship managers for more details on specific arrangements.”

He concluded “The safety and well-being of all our people and their families, as well as our customers, partners and suppliers, is at the forefront of our thoughts and actions.

“Stay safe and well during these difficult times.”

 BCA taking applications for Graduate Development Programme

Stuart Pearson Chief Operating Officer UK Remarketing BCA

Applications for the 2020/2021 BCA Graduate Development Programme are now open. BCA is committed to building effectiveness and efficiency across the business through training and development.

Our highly successful Graduate Management Development Programme is now in its sixth year and BCA has provided places for 50 graduates in that time, many whom have stayed with BCA to progress their career.

The programme gives students the opportunity to experience a variety of business disciplines and automotive specialisations with BCA. Graduates can gain real in-depth experience across different functions of BCA through the in-house programme, with a selection of placements operating on a rotational basis over a 12-month period.

By gaining experiencing across each sector of BCA’s business, graduates can develop a thorough understanding of the organisation that empowers them to flourish as future business leaders.

BCA provides tailored training, mentoring and support throughout, helping students to unlock their maximum potential.

There is also the opportunity to study for a nationally recognised qualification alongside the programme to help students build their skills and capabilities.

Through the Graduate Development Programme, BCA is developing a pool of the very best talent in our industry to become the business leaders of the future.

The Programme is building for future growth in the business as BCA continues to develop as a service provider that touches every part of the automotive value chain.