Leading car auction company reports record January

Motor industry watchers have been surprised by the upturn in used car sales reported for January, with leading vehicle auctions company, British Car Auctions (BCA), reporting record volume and conversion rates for January 2009. The company believes the outstanding results, which are better than any previous January in BCA’s history, can be attributed to a combination of factors including a number of business wins and sustained buyer demand.

BCA sold more cars and vans in January 2009 than in any previous January and massive buyer demand saw the entry to sale figures climb from just below 80% before Christmas to an average in excess of 90%. On the last Friday of January, BCA recorded a group average conversion rate of 92% - the highest recorded since 1946 when the company was founded.

The average price at BCA also rose for the third month running, following an extended period of price pressure throughout most of 2008. BCA’s average used car values rose by £300 in January compared to December, with the picture of a positive upturn in demand and prices seen right across the country.

Blackbushe – the UK’s biggest and busiest auction centre – recorded over thirty 100% sales in January. BCA Glasgow recorded its best volume result for nearly two years, while BCA Nottingham sold over 1,000 vehicles more in January 2009 than last year. Other record results were achieved at Bridgwater, Brighouse, Newcastle, Preston, Paddock Wood and Peterborough. Both the Measham and Blackbushe BCA auction centres also reported exceptional demand for LCV’s with Blackbushe achieving sales volume records on three consecutive weeks during January.

“Used car values fell sharply in 2008, but the rate of decline slowed in November and December and in January this decline was completely turned around with a significant upswing in demand and prices”, confirmed BCA’s UK MD, Andrew Hulme.

“Throughout January, BCA sold an average of 13,000 vehicles every week with conversion rates climbing to in excess of 90% - significantly higher, year-on-year. This suggests that motorists are now more confident to buy used cars – because they represent exceptional value for money.”

Hulme continued: "BCA’s dealer customers are telling us that consumer footfall has increased significantly in the New Year and used cars are selling in greater numbers. The real test will be over the coming weeks and will depend on any sustained retail demand those dealers experience."