7 August 2015 - BCA Pulse Cars: Average values rise in July
Values for Fleet & Lease and Dealer cars remain at near record levels
A steady month for the wholesale used car market is reported by BCA as average values rose during July, with good levels of demand in the fleet/lease and dealer P/X sectors. Values rose by £154 over the month, equivalent to a 1.9% uplift with sale conversion rates climbing. Average values in the fleet & lease sector remained at near record levels, as they have done for most of 2015, despite falling by £65 (0.6%) compared to June.
Average values for dealer part-exchange cars fell slightly by just £10, but at £4,268 were the fourth highest ever recorded by BCA. Nearly-new values improved by nearly £900, although model mix plays a significant role in this sector. Year-on-year values were ahead for fleet/lease and dealer part-exchange, although nearly-new values fell slightly.
The headline average of a used car value rose by £154 (1.9%) over the month, equivalent to a 1.9% uplift with performance against CAP improving by half a point. Year-on-year, values continue to climb with the average value of a car sold by BCA in July 2015 up by £206 (2.6%), compared to July 2014.
Year-on-year table: All cars
Simon Henstock, BCA’s UK Operations Director commented “Supply and demand remain well balanced, with conversion rates improving in July, despite the typical summer slowdown the market experiences once the summer holiday period begins.”
“Sales have been well attended throughout the auction network in July and online bidding has been strong, but it is noticeable that buyers are being more selective. Condition, preparation and presentation is important and it is worth considering SMART repairs for those cars that have suffered low level cosmetic damage in the shape of car park dents, stone chips and damage to alloy wheels.”
“Sellers have generally been receptive to market sentiment in July, setting sensible reserves that have seen sale conversion rates at healthy levels. There is little to be gained by over valuing cars, particularly when there is increasing competition for the buyer’s wallet.”
Fleet & lease cars averaged £9,662 in July, remaining at near record levels, as they have done for most of 2015, despite falling by £65 (0.6%) compared to June. The past six months have recorded the six highest average monthly values on record for the fleet & lease sector. Retained value against original MRP (Manufacturers Retail Price) fell marginally to 41.69% over the month, with age and mileage broadly static. Average values were up by £251 (2.6%) compared to July 2014, with performance against CAP Clean up by a point and retained value marginally down on 2014.
Year-on-year table: Fleet & lease
Average values for dealer part-exchange cars fell slightly by just £10, but at £4,268 were the fourth highest ever recorded by BCA. Year-on-year values remain ahead by £203 (4.9%), with CAP Clean performance ahead by nearly two points compared to a year ago.
Year-on-year table: Part-Exchange
Nearly-new values improved to £21,250, the highest average monthly value since January this year. Model mix has a significant effect in this very low volume sector. CAP Clean performance imporved slightly to 99.57%.