Despite volumes remaining high, values climbed again in February with the headline average value reaching a record figure. Year-on-year, average values rose by more than 11% as BCA offered a richer mix of stock with a lower age and mileage profile.
Buyers continued to compete strongly for stock across the board with well-presented vehicles in ready-to-retail condition being strongly sought after. Average values for fleet and lease stock rose to the second highest point on record, while price performance for dealer part-exchange vehicles remained at near record levels.
February recorded the highest headline figure since Pulse began reporting in 2005, with values rising by £203 (2.3%) to £8,822. Year-on-year values were up by 11.2% (£893), with average age and mileage falling by five months and 4,500 miles respectively.
Year-on-year table: All cars
Simon Henstock, BCA Chief Operating Officer UK Remarketing commented “BCA reports strong levels of demand in February, with plenty of interest in retail ready cars. February was a good trading month, however, the increase in the average selling price is only partially driven by the market. The richer mix of product offered by BCA, along with the lower average age and mileage profile is also impacting positively on values.”
He added “Buyers still have a lot more choice and vehicles requiring repair and refurbishment need to be sensibly valued to compete. There is a noticeable and appreciable improvement in sales performance when vehicles are presented in 'ready to retail' condition, for the professional buyer to take away and sell without delay. For cars with cosmetic damage, SMART repairs are a cost effective option for sellers, meaning their vehicles can be quickly processed and presented in the best possible condition.”
“The market is anticipating increased part-exchange business and greater volumes from fleet and contract hire sources over the coming weeks. With Easter imminent – often a watershed in demand - this could impact on residual values in the weeks ahead and BCA is recommending that volume vendors appraise their sale stock closely to ensure it is valued in line with market expectations.”
Average values in the fleet and lease sector rose marginally, reaching £10,179, the second highest point on record. Retained value against original MRP (Manufacturers Retail Price) improved by a half a point to 42.5%, while year-on-year values were up significantly, rising by £517 (5.3%), as both age and mileage continue to decline.
Year-on-year table: Fleet & lease
Dealer part-exchange values were effectively static in February, falling by just £11 to £4,568 over the month. Year-on-year values were ahead by £313 (7.3%), with average age and mileage little changed over the period.
Year-on-year table: Part-Exchange
Average nearly-new values fell to £17,247 in February, with model mix having a significant effect in this low volume sector.
Rolling 13 month average value performance by sector.