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UK car parc getting older and mileages are rising
publication date: Oct 1, 2011
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author/source: Robin Roberts
According to new data from British Car Auctions, sales of used vehicles continue to play a vital
role in sustaining the UK motor industry.
BCA's Report shows that in 2010 used car volumes rose to 6.8 million and the overall market value increased to a record breaking £35 billion as the used car market continued to lead the recovery in the motor industry. An additional 270,000 used cars were sold compared to 2009, generating an extra £800 million in value. The average used car selling price slipped year on year, however, from £5,422 in 2009 to £5,332 in 2010, reflecting the changing mix of the used car supply in the UK. Stronger sales of cars in the 6-8 year age group in 2010 helped used car market volumes rise by 4.3% (270,000 units) last year as sales of younger used cars faltered. BCA data also shows that the average mileage of used cars when sold has been rising over time and reached nearly 59,000 in the first half of this year, another market highpoint. But looking ahead, the Report also suggests that a lack of supply of good quality 2-5 year old used cars is a significant concern for the UK motor industry. With fewer new cars being sold since the economic crash of 2008, the available supply of used cars is getting relatively older and at a higher mileage. This will create more competition and expense for dealers to source younger, retail quality used cars and could result in prices rising for motorists when they next change their car. Since the 2008 economic crash, around 500,000 fewer new cars are sold every year and industry forecasts suggest this pattern is unlikely to change before 2012. As the BCA Used Car Market Report points out, you cannot remove over two million new car sales from the used car supply chain without creating waves in the marketplace. While the number of cars in the UK, the car parc, will remain around 30 million units for the foreseeable future, they are rapidly ageing and ‘younger' used cars will become an increasingly scarce commodity. "The simple fact is the UK car parc is getting older, as fewer new cars are sold and both motorists and businesses have held onto their vehicles for longer" said Tony Gannon, Communications Director, BCA. "The average age of cars on UK roads rose in 2010 to 7.25 years, which is a 14 year high. The trend for older cars is rising and we believe this could continue for several years to come." |
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