Fleet & Lease values up 11.3% in 2013
Average fleet & lease values improved by £909 to £8,889 in 2013, a rise of 11.3% compared to 2012. Both average age and mileage fell last year. Average performance against CAP Clean fell slightly to 96.64%.
Across the board, the average value of a used car sold at BCA in 2013 was £7,056, a rise of £857 compared to 2012 (up 13.8%). Average age and mileage declined to 61 months and 56,400 miles respectively, reversing the trend of the previous three years which had seen both age and mileage creep up. Average performance against CAP Clean climbed by nearly half a point to 96.87%.
The firm attributed the record figure to the combination of buyer demand and an ongoing shortage of retail quality stock increased competition for the vehicles on offer.
Looking at monthly values during 2013, the peak month for value was December, where the combination of a short trading month and reduced supply resulted in record values. April posted the lowest monthly value in the annual cycle for the second year running, the effect of the post-Easter decline depressing prices.
Simon Henstock, BCA UK operations director, commented: ‘Demand rarely faltered throughout the year, even into the traditionally quieter summer months and the second half of 2013 was particularly strong. There can be little doubt that news of the improving economic conditions in the UK has put some confidence into the marketplace.’
He added: ‘Looking ahead, our view is that the overall shortage of used product and the issues of supply versus demand will see a continuation of high conversions and higher selling prices in 2014, meaning we are going to see more of what is best described as a “sellers’ market”.
‘However, this does not mean sellers have carte blanche to ignore remarketing best practice. Even when demand is high, it is important to evaluate and appraise stock sensibly. The most successful vendors recognise that condition and grade have a critical role to play in valuing vehicles, rather than just using the price guides in isolation.’