Automotive Industry Digest

Latest Fleet News For The Automotive Industry

Residual value update

A tough but functioning market in March says BCA

Used car values averaged £9,340 at BCA in March 2022 as the wider market continued to trade steadily despite external economic pressures, the cost-of-living squeeze and the ramifications of the conflict in Ukraine.

March values fell by £595 (5.9%) compared to February, but remain well ahead year-on-year, up by £1,391 (17.3%) against March 2021. Demand lifted a little as sellers and buyers found some common ground earlier in the month following the downward movement by the guides, however average values closed out the month in a more negative position than those reflected by the publishers.

The best quality and prepared vehicles continue to be those most fought over and those with unrealistic expectations, or missing provenance soon became left behind as the market made another adjustment.

With BCA trading exclusively online, the company announced the launch of a suite of new digital tools in March, to support customers by making it even easier to do business with BCA.  Major digital upgrades have been announced to BCA Search, Partner Finance Online, MyBCA Selling and Online Proxy Bidding, delivering a more intuitive and efficient service to help BCA’s customers make better informed and swifter decisions on their trading activity.

BCA UK COO Stuart Pearson commented “Last month we raised concerns that sellers and buyers ran the risk of drifting apart in March, and whilst there was an initial positive step, the reality is that by the end of the month things were drifting again, with the final published move into April falling well short of what the overall market was seeing.”

“There is no doubt that things have got tougher for used car retailers due to the pressures on consumers’ wallets and that is bound to have an impact in the wholesale sector.  This is where the value of real-time, daily updated valuation systems can add real “pounds (£)” value and our valuations team have been working closely with our customers to ensure that vehicles are valued in line with market expectations.”

Pearson added “With March 2022 recording the weakest performance for new car sales since 1998, there is no need for panic as diminished supply should ensure that used values remain fairly resilient, although there is definitely room for some further balanced corrections over the next couple of months.”

Pearson continued “Whatever the market conditions, BCA is committed to improving and enhancing the digital experience for our customers by delivering a consistent and user-friendly service on both mobile and desktop platforms.  We were delighted to launch a range of new digital tools in March that make it even easier for customers to do business with BCA, from the initial search for stock and proxy bidding, to financing their auction purchases and tracking vehicles they are selling.   These tools introduce efficiencies and streamline service provision for customers and can be conveniently accessed at any time via BCA Online whenever they are needed.”

“These latest upgrades help our customers control every stage of their interactions with BCA, saving time and driving efficiencies into the digital sales process.”


(* Source: BCA Valuations)

*Article Source

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