Used cars lead industry out of recession

As the motoring industry gradually moves out of its recession, British Car Auctions (BCA) believes it has used cars to thank.Even though much expectation was placed on the Government’s scrappage scheme to inject life into the retail motor sector during the recession, BCA believes that used car values have been the key to spearheading the revival despite new and used car volumes reaching their lowest points for a decade.Though volumes are falling, values held up well against a number of economic pressures with used car values hitting new record levels and exceeding £34billion for the first time as prices rose sharply. Average used car selling prices also recovered strongly and rose from £4,868 in 2008 to £5,422 in 2009. By contrast, the new car market remained flat with values at £28billion.According to Tony Gannon, communications director of BCA, the UK car industry has got better and better at meeting the needs of motorists.“It is this ability to provide a broad range of products at every price point, with a good choice of ‘value adds’ such as warranties and servicing packages, that we believe sustained this crucial revenue stream in 2009,” he said.Dealers have also capitalised on used car sales with turnover increasing by £1.2billion to more than £25billion with 3.53million used cars sold last year. On average, dealers used car selling prices reached £7,413 – up £593.

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