Used car values have suffered their biggest slump in over three years according to British Car Auctions.
The auctioneer’s latest report shows that the average value of a used car in the UK fell to £5332 in the second quarter of the year, a fall of £390 compared to the previous quarter. The falls took place across all the three of BCA’s market sectors: fleet & lease, part-exchange and nearly new.
Anecdotal evidence from within the motor industry suggests that some models are still selling strongly, especially nearly-new mid-sized diesels. But high fuel prices have strangled demand for large-engined petrol models, with or without premium badges, with traders reporting that some cars are effectively unsaleable.
According to BCA’s communications director, Tony Gannon, “June was a particularly tough month and we expect more of the same for July. Despite this, demand is still there for good quality product if it is valued in line with market sentiment.”