Used car market's fragility could lead to 'bumper' savings
Thursday, 29 May 2008 12:00 AM
BCA urge buyers to do their homework before splashing out on a used car - or they could end up with something like this
The latest figures published by vehicle auction company, BCA, has revealed that average used car values are under substantial pressure, despite moving very little in the last month or so.
Values in April averaged at around £5,406, which showed virtually no change from March, which recorded a figure of £5,400. BCA spokesperson Tim Naylor is keen to point out to buyers that there are some excellent deals to be found on good quality ex-fleet and nearly-new vehicles.
"Confidence in the used vehicle market is fragile in the post-Easter period and there are increasing volumes of cars available from a variety of quality sources.
"With prices under pressure, any unsold stock will inevitably be sold at what the market will realistically pay. Private buyers could find this is an excellent time to buy at auction."
BCA's Pulse report, which monitors vehicles sold at auction, shows that prices for fleet and lease cars demonstrated some relatively modest growth in April, rising from £6,619 in March to £6,642.
Average part-exchange values fell by £24 (one per cent) to £2,346, a third consecutive monthly fall. Nearly-new values were £119 down on March at £14,858, equivalent to a fall of three-quarters of one percent.
"With many vehicles sold at auction being one-owner and direct-entered from fleets and leasing companies, they already represent excellent value for money," Mr Naylor added.
"But now used car buyers have a chance to get an even better deal and with cars of every age and description and a price range to suit every budget, there will be something for everyone.
"Most first time auction-goers find the process a little daunting and we advise buyers to attend several auctions before buying. Once you have decided what make and model you want, set a firm budget and keep to it.
"Our bigger BCA auction centres can offer up to 1,000 cars a day, so there is always plenty of choice - if you reach your budget and get outbid, then walk away and find another car to bid on."
