Common used automotive values have suffered a steady decline dropping greater than 22% since their peak in March with virtually half of that occurring within the final three months, experiences public sale home BCA.

In December, the typical worth of used automobiles at BCA was £6,918, marking a £315 (4.4%) lower from November’s determine of £7,223. The persisting stress on used automotive values is obvious in an additional 2.2% decline in December.

All through the second half of 2023, common used automotive values underwent a noticeable realignment, influenced by broader financial elements impacting retail exercise. The elevated availability of latest automobiles and producer incentives has additionally performed a job.

The inventory combine noticed a decline, with a scarcity of three to 4-year-old autos compensated by the next quantity of older, lower-grade autos getting into the market, additional affecting common values.

Stuart Pearson, BCA’s chief working officer, famous the difficult nature of the final quarter of 2023, with varied elements contributing to the slowdown in retail: “Patrons have been caught in a dilemma of whether or not they need to ‘stick or twist’, nonetheless a quantity actively took benefit of considerably decrease costs in December to refresh their forecourts and have been realigning their present inventory on a weekly and infrequently day by day foundation.” 

Regardless of the challenges, BCA reported constructive gross sales efficiency between Christmas and the New Yr, whereas different public sale operators remained inactive. Gross sales throughout this era noticed conversion charges exceeding 90%, with sturdy purchaser competitors for inventory.

Pearson famous that whereas there was ongoing stress on used automotive values, they’ve now shifted to ranges not removed from these seen in pre-pandemic occasions.

Contemplating the financial challenges within the UK throughout 2023, together with excessive inflation and a cost-of-living disaster, he stated the potential peaking of assorted elements might assist an uptick in retail exercise and better stability in used automobile costs.

Trying forward, Pearson expressed optimism primarily based on elevated exercise within the first week of on-line auctions in 2024 and famous a degree of optimism among the many buyer base which advised the potential for a extra secure month.