Headline used car values at BCA remain strong

The headline average value for a used car reached a record level in November, with BCA reporting another strong month for price performance in the used car market.

The average value of a used car sold at BCA in November increased to £8,126, a £134 (1.6%) rise compared to October despite performance against CAP Clean falling by half a percentage point to 96.15%.  A small change in sector mix contributed to the rise, as higher value fleet & lease cars represented a slightly larger percentage during the month.

Year-on-year, average values were up by £51 (0.6%), with age static and mileage continuing to fall.  Performance against CAP was up by nearly one percentage point compared to 2014.

While average values for fleet/lease and part-exchange cars both fell back slightly from the record levels seen in October, both remained well ahead year-on-year, with the fleet & lease value being the second highest on record.

However, issues over condition and presentation remain.

Simon Henstock, BCA’s UK operations director explained: “While average values remain exceptionally strong, this reflects the development of a two-tier market, where the best vehicles sell quickly for often exceptional values, while the less attractive or over-valued cars struggle to attract the same sort of attention.”

He added: “It is important that the less desirable cars are properly appraised and valued in line with market sentiment, otherwise there is a risk they will remain unsold, putting pressure on conversion rates.  Volume sellers particularly need to pay attention to this and reappraise and revalue any vehicles that are proving difficult to remarket, rather than simply adhering to a one-size-fits-all pricing strategy.”

Fleet & lease car values averaged £9,778 in November, a fall of £70 (0.7%) compared to October, but still the second highest average value recorded for fleet & lease stock since Pulse began reporting.

Retained value against original MRP (Manufacturers Retail Price) was down slightly at 41.04%, with age and mileage broadly static.

Compared to November 2014, average fleet & lease values were up by £145 (1.5%), with performance against CAP Clean up and retained value down slightly on 2014.