The average value of used cars fell last month, according to vehicle remarketing firm British Car Auctions (BCA). It found that average used car values were down by 2.5 per cent in October, in line with the typical annual price movements.
BCA's most recent Pulse report also showed that volumes reduced by about 5 per cent compared with September, and the fact that demand is currently greater than supply is maintaining values at a relatively positive level. Although recession and economic cutbacks have affected the industry, the auction group argue that supply issues are also still having an impact on the market.
The report revealed that values in the fleet and lease sector took the brunt of the downturn, falling by 3.8 per cent, and that part-exchange values remained stable.
Tony Gannon, communications director at BCA, commented "October has heralded the typical slowing in demand that the market usually experiences in the run-up to the Christmas period. However, the effect has been tempered this year by the continuing shortage of retail quality stock - the competitive pressure for the best examples in the wholesale arena has meant average values are probably stronger than expected.
He added "Used cars continue to be the battleground for dealer profitability and this will remain the case while new car retail sales continue to be slow."
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