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Used car market: increase in volumes pushes down part-exchange values

Dealer-Auction has seen a softening in franchised dealers’ part-exchange values in March compared to February, as the volume of dealer part-exchanges being auctioned has increased, largely due to more trade cars being generated from new car registrations and the March plate change.

Average used car values fell by 3.1% to £3,058 in March compared to £3,155 in February.

Performance against CAP Clean was 97% with an average 5.1% (£155) profit per vehicle sale.

But average values for premium brand part-exchanges have increased by 4% to £5,652 in March, from £5,433 in February, up by £219. Average profit per vehicle was 3.2% (£180).

Gavin Smith, co-founder and director of Dealer-Auction said: “Historically, the plate change has affected used car values for the following few weeks.

"However, desirable vehicles which are displayed well are still demanding a premium and generating the selling dealers some healthy trade profits.

“We have also seen an increase in the volume of premium brand models being auctioned which has pushed average values up.

“This is largely due to more premium brand dealers recognising the benefits and cost savings made by auctioning higher valued vehicles online.”

Dealer-Auction offers trade cars from franchised dealers to thousands of pre-vetted, registered trade-only buyers.

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