Used car values reach 12-month high | Positive news for used EVs

Used car values averaged £7,800 at BCA in July, up by £233 (3.2%) compared to June, with wholesale demand across most sectors remaining positive and unseasonably strong.

Average values reached the highest point since the same month last year, with results being driven by an improving mix of stock and active buyers reaching the highest point on record at BCA. 

Sold volumes also rose significantly month-on-month, up by 14% compared to June.

While values on older cars declined across June and July and into August, prices have generally remained incredibly stable and well ahead of seasonal norms, helping to drive confidence into the market and support positive decision making by sellers and buyers.

Demand for electric vehicles (EVs) has been particularly positive over the past four months, BCA says, with more than 1,200 different customers purchasing used EVs and heading into July, first-time conversions averaged over 80% across its used EV stock.   

Stuart Pearson, BCA’s chief operating officer, said: “The used car sector continued to exhibit a great deal of stability in July, as BCA recorded the highest monthly value in 12 months. 

“Significant buyer engagement and an improving mix of stock combined to drive sold volume upwards, well ahead compared to June and the same period last year.” 

Pearson added that 2024 has been a year of recovery following the pricing volatility in the final quarter of 2023 and, in particular, the consistency of the past few months has done much to promote confidence across the wider used car market.

He explained: “With signs that economic pressures are starting to ease, as interest rates fall for the first time since the onset of the pandemic and inflation rates normalise, the expectation is that consumers should also start to feel the benefit and some of those deferred purchases will be made as we exit the summer months and move into the final quarter of the year.

“With retail stock levels running generally low, we’re already seeing a few early movers get ahead of the expected positive bounce that the market can take as we move out of the school holiday period.  It all points towards a strong and stable market for some months to come.”