14 November 2014 - BCA Pulse Cars: Average used car values bounce back in October
Average used car values climbed in October to reach the second highest point on record. The headline average value of a used car increased by £319 (4.2%) to £7,429, with performance against CAP Clean averaging 95.6%.
Year-on-year values remained ahead by £574, equivalent to an 8.0% uplift, with both average age and mileage falling over the period. CAP Clean performance was down by a point, year-on-year.
Fleet & lease cars averaged £9,533 in October, a rise of £88 (0.9%) compared to September, while average dealer part-exchange values improved for the second month running, reaching a new record level of £4,136. Nearly-new values declined for the second month running, although model mix has a significant effect in this low volume sector.
Simon Henstock, BCA’s UK Operations Director commented “Used car volumes rose more slowly than expected in the wake of the plate change and this allowed the market to absorb the increase without impacting unduly on price performance through October.”
He added “However, with dealers anecdotally saying that retail activity has slowed somewhat in recent weeks, we are starting to see some pressure on conversions in the wholesale market and rising stock levels as a result. With more choice for buyers, this may impact on average values between now and the end of the year, particularly for less desirable, lower-specced vehicles. The shortage of retail quality stock continues, however, and the best presented cars in attractive colours continue to make good values for sellers.”
Year-on-year table: All cars
Fleet & lease cars averaged £9,533 in October, a rise of £88 (0.9%) compared to September, with CAP Clean performance falling by two points to 95. 2% on average over the month. Year-on-year values were ahead by £395, equivalent to a 4.3% uplift. The retained value against original MRP (Manufacturers Retail Price) fell slightly at 42.04% when compared to September and was down half a point, year-on-year.
Year-on-year table: Fleet & lease
Average dealer part-exchange values improved for the second month running, rising to £4,136 – the highest monthly average on record for P/X cars. Year-on-year values were ahead by £296 (7.7%) with average age continuing to rise and mileage falling over the year. CAP Clean performance fell slightly compared to a year ago.
Year-on-year table: Part-Exchange
Nearly-new values declined for the second month running, falling by £300 (1.3%) although model mix has a significant effect in this low volume sector. CAP Clean performance fell slightly to 99.3%.