Average values rose by 1.8% across the board at BCA during July, as professional buyers continued to bid strongly throughout the month and the market reflected a good balance between supply and demand. Despite the summer holiday period being in full swing, the headline average value of a used car rose by £167 to £8,962 – a very similar rise to that seen in July 2016.
Year-on-year, the headline figure was up by £621, equivalent to a 7.24% increase in average values – a result reflecting both the steady demand and the richer mix of stock available at BCA over the past 12 months. Notably, the average age and mileage profile continue to fall - average mileage declined by around 2,200 miles, whilst age fell by two months compared to a year ago.
Year-on-year table: All cars
Values rose to near record levels in the fleet and lease sector and nearly-new values also improved during the month. Average values declined marginally for dealer part-exchange cars during July.
Stuart Pearson, BCA Managing Director UK Remarketing commented “Supply and demand has been relatively well balanced over the summer period, and average values rose in July, as buyers competed strongly for good quality stock. However, professional buyers remain selective, often buying to order and focusing their attention very firmly on the ready-to-retail vehicles that can be churned quickly. The best presented and specified cars are selling quickly, while the budget end of the market is relatively strong, providing the condition is good and vehicles are sensibly appraised and valued.”
He added “As the market approaches the plate change period, we anticipate a period of intense activity in the wholesale sector. Typically, we would expect to see the usual impact of a brief period of oversupply in October and November when volume reaches a peak, followed by a strengthening of prices and conversions as people start to plan for the New Year.”
Average values in the fleet and lease sector improved sharply, rising by £387 (3.8%) compared to June, reversing last month’s fall on record. Retained value against original MRP (Manufacturers Retail Price) improved slightly to 42.29%, whilst year-on-year values were up by a significant £821 (8.4%), as both average age and mileage continued to reduce.
Year-on-year table: Fleet & lease
Values fell slightly in the dealer part-exchange sector, down just £30 (0.6%) compared to June at £4,627. Longer term dealer part-exchange values have been relatively stable over the past 12 months, with year-on-year values ahead by £132 (2.9%), while average age and mileage are little changed over the period.
Year-on-year table: Part-Exchange
Values for nearly-new vehicle values improved by £548 in July, equivalent to a 3.0% increase compared to June. Model mix has a significant effect in this low volume sector.
Year-on-year table: Nearly-New
Rolling 13 month average value performance by sector.