Dealer part exchange values rise 24% in 2013

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Values of part exchange vehicles rose 24% in 2013 compared to the year before, according to figures from BCA.

Overall values rose 13.8% due to the ongoing shortage of retail quality cars in the marketplace.

BCA said the leap in values of part exchanges was due to it signing “significant” remarketing deals with prestige dealer groups, including Jardine, Harwoods and Drayton Group.

It also started a new dealer sales programme in Scotland and rolled out the Appraise, Value & Sell online service to help dealers manage part-exchange stock.

BCA UK operations director Simon Henstock said demand had been strong all year  but particularly so in the second half.

“Looking ahead, our view is that the overall shortage of used product and the issues of supply versus demand will see a continuation of high conversions and higher selling prices in 2014, meaning we are going to see more of what is best described as a sellers market. 

“However, this does not mean sellers have carte blanche to ignore remarketing best practice.

“Even when demand is high, it is important to evaluate and appraise stock sensibly.

“The most successful vendors recognise that condition and grade have a critical role to play in valuing vehicles, rather than just using the price guides in isolation.”