Record prices achieved for used cars

Used cars are now selling for record prices, according to new data from British Car Auctions (BCA).

It said the average sale price for a second hand car in August was £8,342, up by £503 on the same month last year and a rise of just £1 on July’s figure.

It’s good news for dealerships and reports like this one are helpful when making stocking decisions. Insight into what is selling well and attracting buyers can help to boost your business. However, if you change the type or volume of cars you stock, be sure to check your motor trade insurance to be sure you are adequately covered.

The BCA report said that used car sales had been strong during August, despite it being the summer holidays when sales are often slacker.

BCA’s Simon Henstock said: “August was a strong month in the used wholesale markets. Prices have improved as inventory has dropped and conversion rates have risen with first time sales – which are critical to churn – also improving.

“Reports from managers across BCA’s 23 strong network also bear this out, with both car and LCV sales performing strongly, despite being at the height of the summer holiday season.”

The report showed that the average dealer part-exchange value stood at the fourth highest recorded during August, while fleet/lease vehicle values rose by 2.3 per cent to reach their third highest value.

Mr Henstock said that steady sales in July improved in August and further good news is expected.

“With the September plate change nearly upon us, we can expect the markets to be very busy indeed over the coming weeks,” he added.