BCA says pressure on values and conversion levels is season typical
The report for June shows that average fleet values improved marginally from £7,428 to £7,456 (0.4%), with CAP performance virtually unchanged at 94.67%. However, BCA adds that this was largely due to some subtle shifts in model mix over the month and average prices actually fell in two of the three main product sectors.
Over the month, budget car values fell from £3,527 to £3,172 (down £355 or 9.9%), and volume cars fell from £5,670 to £5,509 (down £161 or 2.8%). In contrast, premium models increased in value from £10,771 to £10,866 (up £95 or just under 1%). Volumes of premium cars sold also increased by 16% on the back of some special sales staged by BCA, and while sales of volume models also increased, this was by just 7%. This change in model mix was largely responsible for the overall increase in the fleet/lease average value.
Across the sector as a whole, average values for June recovered most of the loss sustained in May to sit at £5,802, a £146 improvement over the previous month’s figure of £5,656. Performance against CAP Clean was broadly in line with last month at 96.68%.
BCA communications director Tony Gannon commented: 'We've seen a turning point in demand over recent weeks and both values and conversion levels have been under pressure – quite typical for this time of the year. Dealers are saying that retail sales have eased off and this is reflected in the auction halls and online bidding for replacement vehicles. However, demand is far from flat, it's just more selective than it has been. What we may be seeing is a return to a "normal" level of business and some price stability – at a level that compares favourably with 2009 values.'
BCA's year-on-year comparisons show average fleet & lease values ahead by just over £400 in June, although CAP performance is down by more than five points.
However, overall year-on-year values remained behind for the second month running, but by a lower margin than seen in May – just £48 separates the average values recorded in June 2009 from June 2010, compared to £117 last month.For more of the latest industry news, click here.