Fleet & lease car values fall slightly in January, reports BCA
The latest Pulse report shows fleet & lease car values averaged £9,440 in January, a fall of £148 (1.5%) compared to December’s figure of £9,588. Performance against CAP improved sharply from 95.64% to 98.03%, while retained value against original MRP (Manufacturers Retail Price) improved slightly at 40.48%, with age and mileage broadly static. Compared to January 2015, average fleet & lease values were down slightly by £38 (0.4%), with performance against CAP Clean improving although retained value was nearly a percentage point down on 2015.
The headline average value of a used car in January fell to £7,877, down by £169 (2.1%) compared to December, although performance against CAP Clean improved quite sharply from 96.4% to 98.5%. Year-on-year, average values were down by £78 (1.0 %), with age static and mileage declining by some 1,400 miles. Performance against CAP was up by a quarter of a percentage point compared to 2015.
Simon Henstock, BCA UK chief operating officer remarketing, commented: “January saw a well-balanced marketplace in terms of supply and demand, with plenty of appetite for used cars across the board. However, average prices dropped slightly compared to the back end of 2015 and while there is a lot of demand for good retail quality stock, there are challenges at the extremities of the market.
“Valuing older and poorer quality cars accurately is crucial to tempt the buyers. The price of scrap has fallen and this has effectively removed the safety net for these low value vehicles. At the other end of the market, there is pressure on the values of late plate vehicles due to the attractive deals available on new/PCP and the availability of pre-registered vehicles in the marketplace. “
“The relatively mild weather has also meant that the seasonally strong performance for the 4×4 sector hasn’t really reached expectations. With Easter arriving early, we may see values reduce more quickly than usual once we move into the second quarter and the holiday season hits.”