Seasonal pressures in play but values remain at near record levels
Used car values stalled in June following two consecutive months of record values in the wholesale markets. With seasonal pressures coming into play as the markets slow for the summer holiday period, the headline average value of a used car fell by £63 (0.76%) to £8,198 – although this figure is the second highest monthly average value on record. Year-on-year, the headline figure was up by £440, equivalent to a 5.6% increase in average values.
Values fell by £237 (2.3%) in the fleet and lease sector, while part-exchange values reached record levels, although the rise of £17 to £4,507 was marginal. Nearly-new values fell by £452 (2.2%) to £20,042, although model mix has a significant effect in this low volume sector.
Simon Henstock, BCA Chief Operating Officer UK Remarketing commented “The summer months typically see some pressure exerted on average values so we are not surprised to see the headline figure drop in June, as it did last year. Supply and demand are reasonably well balanced, with conversion rates remaining relatively stable and buyers are continuing to compete strongly for good retail-quality stock.”
He added “While cars presented in the best ready-to-retail condition will typically outperform the market, vendors should not expect similar returns for vehicles in poor or below average condition. It is important to appraise vehicles honestly and accurately as there is little to be gained by placing over-aspirational reserve prices on poor condition cars.”
Year-on-year table: All cars
Looking at the average price performance by model shape, values were generally flat in June, although there was a spike in convertible values in anticipation of warmer weather and a fall in 4x4s, which tend to reach a low point in the summer. There was little significant movement in the larger volume sectors, with hatchbacks down 0.87%, MPVs rising by 2.7% and saloons up by 0.3%.
Values fell by £237 (2.3%) in the fleet and lease sector, following four consecutive month-on-month improvements. Retained value against original MRP (Manufacturers Retail Price) fell marginally to 41.3% from 41.9% in May, with age and mileage steady.
Year-on-year table: Fleet & lease
Average values for dealer part-exchange cars improved for the fourth month running and the third consecutive record value, although the rise was again modest at £17. Values averaged £4,507 in June, with year-on-year values ahead by £129 (3.0%), with age static and mileage declining.
Year-on-year table: Part-Exchange
Nearly-new values fell in June, by £452 (2.2%) to £20,042, although model mix has a significant effect in this low volume sector.