Falls in values are part of typical seasonal pattern, says BCA
According to the Pulse data, values in the fleet & lease sector were hit hardest in October, falling by £292 (down 3.8%) to £7,419. Year-on-year values are behind by nearly £200 although BCA says that they have been remarkably stable over the past 12 months and have moved little from the £7,500 mark.
Average used car values fell back by £146 in October, which according to BCA shows that the used market is continuing to settle into a more typical seasonal pattern. It adds that the fall of just under 2.5% could have been larger due to the continuing economic uncertainty and fiscal pressures affecting "big ticket" transactions. However, supply issues still affect the marketplace – volumes were down by around 5% compared to September – and this, combined with decent levels of demand is helping to keep values relatively stable.
Performance against CAP Clean falling by over two points to 96.24%.
Year on year values remain behind by £229, a similar figure to that recorded over the preceding two months. Values remain well ahead compared to October two years ago, however, with over £1,000 separating the two figures.
BCA's communications director Tony Gannon commented: 'October has heralded the typical slowing in demand that the market usually experiences in the run-up to the Christmas period. However, the effect has been tempered this year by the continuing shortage of retail quality stock – the competitive pressure for the best examples in the wholesale arena has meant average values are probably stronger than expected.'
He added: 'Professional buyers remained active in October, although levels of demand began to fall off towards the latter part of the month. The shortage of corporate entered stock meant that conversion rates were generally good for volume vendors, unless vehicles were offered in poor condition or valued out of step with market expectations. The budget sector remains very busy and again is short of stock – competition can be intense the best presented models, particularly small hatches and economical city cars.
'At the other end of the scale, there were some remarkable – albeit isolated – examples of executive models making exceptionally strong values, while the prestige market enjoyed another strong performance during the month.'
He concluded: 'Used cars continue to be the battleground for dealer profitability and this will remain the case while new car retail sales continue to be slow.'