Average values at record levels as demand continues
The used car market enjoyed a flaming June as average values continued to rise, with record levels reached for fleet/lease and dealer part-exchange cars.
The headline average value improved to £9,641 – the third highest value on record. Year-on-year, average values rose by £846, a 9.6% rise over the 12-month period, despite average age rising slightly.
Fleet & Lease values rose to £11,198, while Dealer Part-Exchange values improved to a record high of £5,003. Values for nearly-new vehicles increased by £2,200 (10.8%) to £22,410, although model mix has a significant influence in this low volume sector.
Stuart Pearson BCA COO UK Remarketing commented, “Demand from professional buyers continued at very healthy levels into June, with both average values and conversion rates improving compared to May. Auction attendance has been excellent across BCA’s nationwide remarketing network throughout June and bidding – both in-lane and online – has been very competitive across the board.”
He added, “Fleet & lease values reached record levels for the third time this year, while dealer part-exchange stock posted the fifth consecutive month of record values at BCA. This sustained value evolution reflects both high levels of demand and the quality of stock on offer at BCA.”
Pearson concluded, “To put the current market into context, it is the first time since 2010 that June average values have shown any improvement over the previous month. And this is despite the excellent weather, the FIFA World Cup and the fast approaching summer holiday period, distractions that have typically heralded a softening of demand for used cars in previous years.”
Year-on-year table: All cars
Average fleet & lease values improved by £235 (2.1%) to £11,198, the third time a record value has been achieved in the last four months. Retained value against original MRP (Manufacturers Retail Price) improved marginally to 43.68%. Year-on-year values were up by £1,099 (10.8%), with age rising and mileage declining, although both by small margins.
Year-on-year table: Fleet & lease
Average dealer part-exchange values improved only marginally to £5,003, but it was enough to register the fifth consecutive month of record average values in this sector. Year-on-year values were ahead by £346, representing a 7.4% increase over the 12-month period with age and mileage decreasing.
Year-on-year table: Dealer Part-Exchange
Values for nearly-new vehicles increased by £2,200 (10.8%) to £22,410, a third consecutive monthly rise. Values are up by £4,197 (23.0%) year-on-year, a substantial rise even when acknowledging the effect of model mix in this very low volume sector.
Year-on-year table: Nearly-New