Figures just published today in the new BCA Used Car Market Report, show that used car sales in hit 7.4 million units last year, the highest volume recorded since 2006 and fuelling a record market value of £42.7 billion.
Strong retail sales dominated the picture, with dealers accounting for a record market share, as they increased their volumes year on year by 5.1% to 4.28 million, equivalent to 57.8% of the total. Private-to-private sales market share declined marginally to 38%. Continued value growth saw the used car market value climb by £4.6 billion to an all-time high of £42.7 billion, outperforming the total new car market value by £6 billion.
Overall average used car selling prices rose to £5,764 in 2013 from £5,352 the previous year. A car brought from a dealers averaged £7,660 last year, a rise of £688 over the year. In contrast, the average value of a car sold privately dropped by £431 to £2,465. A combination of rising new car registrations and owners running their existing cars for longer resulted in a higher number of cars on UK roads in 2013. The ‘parc' figure rose by 400,000 and is the first significant rise in 8 years. Further increases in the parc are likely in 2014 and 2015 as the new car market continues to recover.
The long-term impact of the fall in new car sales during and immediately following the recession can still be seen, with the average age of vehicles on UK roads reaching 7.7 years - the highest figure in over thirty years. The number of cars reaching their 12th birthday continues to rise at 78.8% with 41.6% now making it to the 15-year mark.
The Report, authored by Peter Cooke Emeritus Professor, Centre for Automotive Management, University of Buckingham Business School, says that an improving economy and a better selection of ‘younger' used cars in the marketplace has helped to stimulate demand.
Monday, November 10, 2014 - 08:45