Fleet & lease values see slight fall in November but remain second highest on record
Latest Pulse figures show that the average value of a used car sold at BCA in November increased to £8,126, a £134 (1.6%) rise compared to October despite performance against CAP Clean falling by half a percentage point to 96.15%. BCA added that a small change in sector mix contributed to the rise, as higher value fleet & lease cars represented a slightly larger percentage during the month. Year-on-year, average values were up by £51 (0.6%), with age static and mileage continuing to fall. Performance against CAP was up by nearly one percentage point compared to 2014.
Within the fleet & lease sector, values averaged £9,778 in November, a fall of £70 (0.7%) compared to October, but still the second highest average value recorded for fleet & lease stock since Pulse began reporting. Retained value against original MRP (Manufacturers Retail Price) was down slightly at 41.04%, with age and mileage broadly static. Compared to November 2014, average fleet & lease values were up by £145 (1.5%), with performance against CAP Clean up and retained value down slightly on 2014.
However, BCA warned that issues over condition and presentation remain, with Simon Henstock, UK operations director saying: “While average values remain exceptionally strong, this reflects the development of a two-tier market, where the best vehicles sell quickly for often exceptional values, while the less attractive or over-valued cars struggle to attract the same sort of attention.”
He added: “It is important that the less desirable cars are properly appraised and valued in line with market sentiment, otherwise there is a risk they will remain unsold, putting pressure on conversion rates. Volume sellers particularly need to pay attention to this and reappraise and revalue any vehicles that are proving difficult to remarket, rather than simply adhering to a one-size-fits-all pricing strategy.”