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Fleet & lease values continue upward trend, reports BCA

Quarterly data from BCA shows that average used car values climbed by £174 in Q2 2014 compared to the first quarter of the year, bucking the pattern established over the previous two years where Q2 values declined against the first quarter of the year. Average values were also up by £696 year-on-year, equivalent to a 10.1% increase. While values are rising, both average age and mileage are falling.

BCA’s UK operations director Simon Henstock commented: ‘Average used car values have been rising largely as a result of an imbalance in supply and demand. As the economy improves, there is a greater demand from motorists to change their existing vehicle, yet supplies of good, retail quality cars in the wholesale sector are relatively limited – a legacy of the lower new car sales following the onset of the recession.’

He added: ‘This has resulted in some significant rises in average value across the used car market, which is highlighted when you look at the longer-term trends. Dealer part-exchange cars sold by BCA are averaging 40% more in 2014 than they were in the same period in 2012, while fleet & lease cars are up by 21% over the same timescale. Some of this will be down to model mix, but much of it is sheer demand in a competitive marketplace.’

Cars from fleet & lease sources have also seen average values increase significantly over the past 12 months, rising by £784 (8.9%). Average mileage and age has increased slightly, while average performance against Manufacturer Recommended Price (MRP) is up nearly a point, year-on-year and over three points higher compared to 2012. Over the past 24 months, fleet & lease values have risen by £1,663 or 21.1%.

 

Fleet & lease

Fleet & lease

Avg Age

Avg Mileage

Avg Value

Sale vs CAP

Vs MRP

Q2 13

 

49,202

£7,873

   

Q2 13

 

45,326

£8,752

   

Q2 14

 

46,317

£9,536

   

 

Nearly-new values have also risen, but with much lower volumes reaching the used car sector, model mix has a significant effect on average values. Values rose by £1,820 over the past year, equivalent to a 9.4% increase.

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Natalie Middleton

Natalie has worked as a fleet journalist for 16 years, previously as assistant editor on the former Company Car magazine before joining Fleet World in 2006. Prior to this, she worked on a range of B2B titles, including Insurance Age and Insurance Day. As Business Editor, Natalie ensures the group websites and newsletters are updated with the latest news.