BCA has released valuation insight covering the post-lockdown period highlighting that used car values and demand from professional buyers have steadily risen.
The insight revealed that values strengthened in May, as the number of online bidders participating in BCA’s Virtual Sales increased, says the company.
Average weekly values in online sales at BCA rose over the two-month period since the lockdown was first introduced, from £4,568 in the first week of April to £8,788 by the fourth week in May.
BCA says values strengthened noticeably in May as more buyer customers interacted with BCA’s online channels.
Stuart Pearson, chief operating officer of UK remarketing at BCA, said: “We reported two weeks ago that momentum was building in the used vehicle sector and thanks to the efforts of our people, suppliers, partners and customers, we have delivered a comprehensive digital remarketing programme that complies with safety legislation and Government guidance.
“There has been a huge amount of customer interaction through our online channels, with activity growing daily and some Virtual Sales seeing buyer participation ahead of those seen in pre-lockdown conditions.
“We have seen demand grow steadily for stock, with acceleration through differing price points throughout the period. In the initial stages, buyers were very much focussed around lower value vehicles, however as more buyers enter the market, we’re seeing greater stability across all sectors.”
BCA Valuations reported that pre-sale valuations averaged 100.2% in virutal sales during the first weeks of lockdown.
BCA valuations tracked the sold price performance throughout the lockdown period and provided a detailed view of marketing performance based on auction prices. BCA says it was notable that both average age and mileage of sold stock increased compared to the immediate pre-lockdown period, with the average car sold being around six months older and having covered 10,000 more miles.
The BCA says there was steady week-on-week improvements recorded in the volume sold and numbers of online buyers participating. BCA reports over 500 online bidders competing in some Virtual Sales channels later in May and says it was noticeable that buyers turned their attention to higher value, younger vehicles as the weeks passed.
BCA announced the introduction of online sales on March 23, initially selling exclusively via the fixed BCA Buy Now Platform. BCA then introduced Virtual Online Sales in early April, held in real time with competitive bidding via BCA Online and the BCA Buyer app.