Used car values continued to rise in September according to BCA's latest Pulse report. The headline average value of a used car rose by £34 to £8,376, the third month in a row a new record value has been established. Year-on-year, the headline figure was up by £674, equivalent to an 8.7% increase in average values.
Fleet/lease values increased by 1.3% to go above £10,000 for the first time on record, while average dealer part-exchange values rose by £64 to a new highpoint of £4,553. Nearly new-values also improved during September.
Simon Henstock, BCA Chief Operating Officer UK Remarketing commented “September saw demand keeping pace with supply, with both the auction halls and online channels being very busy. Sale conversion rates were high, typically exceeding 80% during September, meaning there was good churn in the marketplace.”
“However, by mid-October our dealer customers were anecdotally saying that retail demand was softening and that will inevitably impact the wholesale sector. Professional buyers will inevitably become more choosy, cherry-picking the best presented and most attractive cars. It is critical to appraise and value vehicles appropriately and in line with condition, and invest in the appropriate level of preparation to attract the buyers’ attention where necessary.”
Year-on-year table: All cars
Looking at the average price performance by model shape, values for volume stock were largely static during the month, although MPVs and Estates saw values rise by around 1.7% on average. Convertible values held up, largely as a result of the good late summer and early autumn weather, while 4x4 values are likely to rise in line with the onset of colder conditions in the weeks ahead.
Values in the fleet and lease sector climbed by £127 (1.3%) in September compared to August, to reach £10,017, the highest point on record. Retained value against original MRP (Manufacturers Retail Price) improved to 42.65 in September from 41.7% in August. Year on year values were up by £317 (3.2%), with age falling by one month and mileage down by 3,000.
Year-on-year table: Fleet & lease
Average values for dealer part-exchange cars improved by £64 (1.4%) to a new highpoint of £4,553, following five consecutive months of relatively flat price performance. Year-on-year values were ahead by £219 (5.0%), with both age and mileage static.
Year-on-year table: Part-Exchange
Average nearly-new values improved by £332 (1.5%) to £21,353 in September, although model mix has a significant effect in this low volume sector. Values were up by £828 (4.0%) year on year.
Rolling 13 month average value performance by sector.