Average used car values increase in February to £6,244 (£6,040) – BCA Pulse
While values remain adrift of December 2011’s record levels, February 2012 is the third highest figure since Pulse began reporting and, year-on-year, is ahead by £259 (4.3%).
Used cars averaged just over 98% of CAP Clean in February, at 61 months and 59,000 miles. Sold volumes declined by around 6% compared to January, which is typical for this time of the year.
Looking at the product sectors, fleet/lease values improved to the highest point since January 2011, nearly-new values increased significantly by over 11% and part-exchange values declined from last month’s record figures but remain ahead year-on-year.
BCA’s Communications director, Tony Gannon commented: 'With good quality stock still in short supply and relatively consistent demand, the wholesale market recorded an improved performance over the month in terms of average price. Values were also up again year-on-year, no doubt helped by some minor improvements in the wider economic indicators in recent weeks and some encouraging news on inflation. But with news that mortgage rates will rise for some householders in the coming weeks, any improvement in consumer confidence may be short lived.'
Gannon continued: 'Additionally, we are approaching a time when volumes can rise with the new registration plate prefix generating additional part-exchange numbers and corporate de-fleets, a period which is often accompanied by a softening in demand as Easter approaches. Sellers must continue to be in tune with market conditions and make sure stock is sensibly valued in line with market expectations.'
Fleet & lease values increased by £279 (3.7%) to £7,714, the highest point in over a year and one of the highest average values on record. CAP performance again improved by just over one point to 98.78%, with the average age at 41 months and mileage of just over 50,000 remaining virtually static compared to previous months. Performance against original MRP (Manufacturers Retail Price) was 39.38%. Year-on-year values were ahead by £161 or 2.1%.
The part-exchange sector saw average values fall in February by £73 from the record level seen in January to £2,847 – a decline of 2.5%. Values compared to CAP Clean fell by half a point to 93.1%, at an average age of 7½ years and a mileage in excess of 75,000. Year-on-year values were ahead by £49 or 1.75%.
Average values in the nearly-new sector improved dramatically from £18,158 to £20,175, an increase of £2,017 or 11.1%. Model mix is largely responsible for the changes in this sector as volumes are so low. Average value against CAP Clean improved by half a point to 101.27%.