The data for last month shows fleet & lease car values averaged £9,662, an increase of £222 (2.3%) compared to January’s figure of £9,440. Retained value against original MRP (Manufacturers Retail Price) improved by a percentage point to 41.56, from 40.48% in January, with age and mileage broadly static. Compared to February 2015, average fleet & lease values were virtually static, down by £11, with retained value down by nearly three-quarters of a percentage point.

The headline average value of a used car sold at BCA in February climbed by £52 (0.6%) to £7,929. Year-on-year, average values were up by £115 (1.4 %), with both age and mileage declining.

However, Simon Henstock, BCA chief operating officer UK remarketing, added that buyers remain rather more wary of poorer condition vehicles.

He commented: “Buyers have a lot more choice and vehicles requiring repair and refurbishment need to be sensibly valued to compete. For cars with cosmetic damage, SMART repairs are a cost effective option for sellers, meaning their vehicles can be quickly processed and presented in the best possible condition.”

“The market is anticipating increased part-exchange business and greater volumes from fleet and contract hire sources over the coming weeks. With Easter imminent – often a watershed in demand – this could impact on residual values in the weeks ahead and BCA is recommending that volume vendors appraise their sale stock closely to ensure it is valued in line with market expectations.”

Henstock added: “The importance of professional appraisals that adhere to NAMA standards cannot be over-emphasised, as this builds buyer confidence and delivers benefits for buyers and sellers alike. BCA continues to innovate in this area, investing in training for staff and developing new tools such as the BCA Branch Appraisal App that generate reliable data for the search engine powering Auction View.”