Average used car values rose across the board at BCA in February as strong demand continued unabated from buyers. The latest BCA Pulse Report shows that average used car values rose by 2% month on month and are up by nearly £700 compared to a year ago.
The headline figure of £9,498 is the second highest on record and builds on a strong start to the year that saw BCA sell record volumes across the 24-strong nationwide network of remarketing centres. Values rose for fleet & lease, dealer part-exchange and nearly-new vehicles.
Average age and mileage continues to reduce and, year-on-year, the headline value figure improved by £672 (7.6%) – reflecting both the richer mix of cars available at BCA over the past 12 months and the sustained level of demand experienced during the month.
Stuart Pearson BCA MD UK Remarketing commented “February was another strong month in the remarketing sector and BCA saw competitive bidding across the board from high value prestige stock to older, higher mileage budget vehicles. The arctic blast of weather had no impact on trading, with professional buyers switching to our Live Online platform if travel was difficult.”
“While Easter is often seen as a watershed in demand, every indication suggests the used car sector will enjoy continued demand during 2018, with a number of retailers expecting used sales to play a significant role in overall profitability in the months ahead.”
“Average used car values have been rising at BCA for an extended period and 2018 seems set to maintain that pattern. This reflects the demand from buyers, the high quality of stock consigned to BCA by fleet & lease and dealer vendors and a general falling in average age and mileage at remarketing time.”
Year-on-year table: All cars
February returned the second highest average value on record for fleet & lease stock, with values rising to £10,792, an increase of £279 (2.6%) compared to January. Retained value against original MRP (Manufacturers Retail Price) improved by more than a point over January to reach 43.23%. Year-on-year values were up by £613 (6.0%).
Year-on-year table: Fleet & lease
Average dealer part-exchange values reached the highest point on record, rising by £121 (2.6%) to £4,824 in February. Year-on-year values were ahead by £256, equivalent to a 5.6% uplift.
Year-on-year table: Dealer Part-Exchange
Values for nearly-new vehicle values rose by £71 (0.3%) over the month to £19,751, the highest point in over a year. Model mix has a significant effect in this very low volume sector, with brand specific winners and losers.
Year-on-year table: Nearly-New