Fleet & Lease values feel the pain in May, says BCA
Average Fleet & Lease values for May fell by 5.6% (£443) to £7,428. Performance against CAP Clean fell for the second month running, from 96.9% to 94.86%. as CAP values were very largely untouched, ignoring typical seasonal patterns.
BCA's communications director Tony Gannon said: 'In addition, we are now seeing some of the extended-contract vehicles coming back and the average age at remarketing has crept up by around a month – this will also affect values.'
Year-on-year fleet and lease values remain ahead by £404 in May. This compares to a £986 margin recorded in April, and BCA says it expects this figure to continue to fall in the months ahead.
However, BCA reports that values rallied marginally in the P/X market from £2,592 in April to £2,619 in May, and nearly-new values continued to rise – from £19,752 to £20,393 – on the back of slim volumes and a series of high-profile sales at BCA.
Average used car values fell by just over £200 in May, from £5,871 to £5,656. Performance against CAP Clean fell by one and a half points.
Year-on-year values are behind by £117 – the first time the market has seen this since February 2009, underlining there has been a significant shift in market dynamics over the past 8 -12 weeks.
Mr Gannon concluded: 'We have been telling our customers for some time that we expect prices to stabilise in 2010 and for the market to assume a more traditional pattern. Values cannot rise inexorably – common sense suggests the market will have peaks and troughs in the typical annual cycle. It's just that it has been some time since we experienced a trough.'