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Large fleets continue to keep their cars longer leading to a continued shortage of three to five year old vehicles in the used market.
That was the view of BCA COO Stuart Pearson commenting on the condition of the used car market in February.
“While SMMT has reported growth in new car registrations for the seventh month in a row, with a 26.2% increase in February, issues with long lead times continue to be a concern for the fleet and rental sectors which are the main volume buyers of new vehicles.
“Contract extensions remain in place, meaning the supply of 3 to 5 year old vehicle bread and butter to the wholesale sector could come under more pressure in the months ahead.
“However rapidly new car registrations are going up, it will be some time before we see these vehicles reach the used sector and we expect used values to remain strong as a result.”
BCA said that the average value of used cars in February increased for the two current months.
BCA reported a number of significant benchmarks during the month including two high sales
The £8,540 average value at BCA in February 2023, up 1.7% compared to January 2023. It says there is ongoing pressure on the value of EVs.
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