BCA reports major rise in used car values for September
The firm's data shows that Fleet values increased by a significant £376 (5.1%) from £7,335 in August to £7,711 in September – the largest monthly increase recorded in the past 12 months. Year-on-year values are behind, however, by £139.
Fleet & lease values increased in all three sub-sectors, suggesting that demand was broad-based and it was the product profile itself that was attracting the buyers. Volume fleet & lease values improved by nearly £300 to £5,714, equivalent to a 5.4% increase with CAP performance improving by over 2.5 points.
Budget fleet/lease car values rose even faster, with £676 added over the month, equivalent to a significant 19% increase, with CAP performance increasing by nearly five points – however BCA says that the caveat as always that numbers are low in this sub-sector and model mix has a disproportionate influence on value.
The average used car value at BCA climbed to £5,938 in September from £5,905 in August – equivalent to just over a half percent increase over the month. Performance against CAP Clean increased by over two points to 98.34% – the third highest figure recorded this year.
BCA's UK operations director Simon Henstock commented: 'With new car sales continuing to be slow, dealers are looking to used cars to deliver profitable retail opportunities. Demand remains high for cars in good, ready-to-retail condition and values for the best examples can outstrip guide expectations by hundreds or even thousands of pounds.'
He added: 'Despite there still being talk of recessionary issues and details of the spending review have yet to be announced, demand remains relatively strong in the used car market and the wholesale sector is trading with some confidence. We are likely to see values under a little more pressure from now until the Christmas period, but certainly no return to the dramatic falls we experienced two years ago.'